August 20, 2017

Market Rises Again – But For How Long?

Overbought-Oversold levels for August 9, 2009

The returned to its recent glory on Friday, but if you look at the S&P 500 (SPY) chart closely you will quickly notice that the major index has struggled mightily with some stingy overhead resistance since the gap higher back on 7/30. Until the gap fills I am still not confident in a sustained surge going forward. Once the gap fills, well, we need to wait and see….but until then I think we might just be craving out the top of a new range.

As for the Iron Condor strategy, I will be back later with a short discussion on Iron Condors and how I intend to use them as part of my new trading strategy. Until then….

Have a nice afternoon!


ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 79.1 (overbought)
* Dow Jones (DIA) – 82.7  (very overbought)
* Russell 2000 (IWM) – 69.4 (neutral)
* NASDAQ 100 (QQQQ) – 64.2 (neutral)

Other ETFs

* Ultra Long (SSO) – 78.7 (overbought)
* Ultra Short (SDS) – 20.1 (oversold)