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There Goes Tokyo
The Nikkei 225 managed to claw back almost a percentage point during Friday’s trading session in Japan, after its brutal drop on Thursday. Recall that we looked at hedging the MSCI Japan Index ETF (EWJ) in our post last Saturday (“Big in Japan“). In this post, we’ll take a quick look at how those puts reacted to that Japan ETF’s drop on Thursday, and how the cost of hedging that ETF rose after Thursday’s drop. (more…)
I’ve drawn in the three main topping options from here as I see them on the 60min SPX chart and they are:
-Fall from here to test wedge support, and then break the wedge to trigger the main summer retracement
-Test or slightly exceed the highs to form a double-top targeting the 1580 area
-Retrace to wedge support, then test or slightly exceed the highs to form a double-top targeting the 1500 area
I’m favoring seeing a test of the current highs before a more serious retracement and that’s for three main reasons: (more…)
It looks like a lot of the excitement heading into yesterday’s session has started to die down. The technical levels are relatively clear heading into today. Two notes about them. A lot of resistance has been built up prior to primary resistance, notably around the Volume point of control from yesterday. The main support level today is dealing with down momentum from the overnight session and in a larger than usual gap situation. Indicating that the smart move would be to lock in profits prior to the full gap fill. (more…)
