Thursday, February 19, 2009

Under Pressure

Thursday was a grind down sort of a day where we actually gapped up a tad in the morning and then sold off to close near the lows at about 777. Although I would have expected a more violent selloff below the 800 mark, it has still be a week of red and big money for the bears. Options ex on Friday should be choppy and I think we could be headed lower since the close was not all that inspiring on Thursday.

As for Friday the pivot is at 783.25. We are trading down after hours to about 771 and I do not think this market has a chance at goin up Friday unless we get back over the pivot point. If we gap down it could be a ugly day alll day long. We may see options ex tug the SPX towards the 750 strike which should be interesting. There is a great short trade around the pivot that should fail if the bears want it to. Above the pivot and we could maybe just see the thing get to 800ish. But I would not be betting on any upside into the weekend.

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