Option Expiration Week Upon Us All

July 13th, 2009

Morning traders! Hope everyone had a great weekend. Outside DC we spent some time at a local wine festival on Saturday. It was great weather, food, and of course wine. Couldn’t have asked for a better summer day.

 

Now that I’m done dreaming about being back outside, let’s talk about option expiration week. Typically as we all know, these weeks can be a real bear to navigate. Throw in some more earnings releases, relatively low volume trading over the past couple months, and some critical support/resistance lines near by and we have one heck of a week ahead of us. For some reason my FFI – “funny feeling indicator”- is going off this morning in anticipation. On the technical side, we are sitting right at 880 (the big line in the sand) and need to either move significantly lower or start to creep higher before resuming the fall. If we do manage to make the trek higher, I think 905 may be the highest we go. See the chart below for today’s S/R levels in GREEN.

 

spx13

 

On the Oil front, the USO is also at a very key level of support. A break below the current level would send this down to 27.50 very quickly – believe that. But a rally from here could also take it to 37.50 in a hurry. Either way…watch OIL this week like a hawk.

 

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