Friday, May 8, 2015

Whoopee, S&P 500 Index Recoveres 2-Day Slide

The S&P 500 Index has recovered 1.25% today, arguably a very strong performance.  However, if one is willing to look at the recent performance with a wider lens, he might note that the failed attempts at the late-February high have not been resolved.  This recovery today and yesterday is just that, a recovery from weak price action.  As such, it should not be afforded particularly positive attributes.  Instead, we would note that the S&P has not delivered for the last three months and while it may rally forth from here, traders have benefited from respecting resistance toward current levels (2112).

For those who believe the debate on resistance at 2112 shall be resolved in short order, one might look to the short dated May Emini put spreads (6 days).  They may offer good protection or positioning opportunity. 

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