Opening Print and S&P Levels to Watch

It's OK to say you are unsure what's going to happen next. A few weeks ago 90% of everyone we spoke to called for lower prices. The most recent rally is another prime example of when the bus gets too full.

That said, most of the shorts have covered and most people we talk to think the S&P still has more room on the upside. According to the Ned Davis S&P cash study, the Friday before the Sept expiration has been up 19 and down 9 of the last 28 occasions and Monday has been up 16 and down 13 of the last 29. With that in mind, we lean to selling rallies today. We may look to buy weakness, but with the S&P up 6 days in a row the market is overdue for a down day.

As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.

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