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All yellow marks occur when price is above the resistance/support line of around the 1040 level. If 1040 breaks, I have to look at where the next yellow marks are. The next two that show up looking backwards are two at the 982-979 area. The yellow marks represent price congestion/inflection points. If the market breaks above or below these clusters of price action it tends to move until it creates a new support/resistance level.

So if 979/982 is legit, that means its the next level and that those levels will be the support and the range opens up from 979/982 up to 1040. I’m not sure if we are breaking down right away though. Today’s action was bad, but the market could do the same thing it did this morning and close higher. I’m open to any situation, but overall looking for downside plays.

I made a few SPY call/put trades. All losses on the call side, all gains on the put side and the gains eclipsed the loss. Did an AAPL put spread near the close took gains for the short term, it looks lower though. Small oversold on its daily chart I didn’t want to chance holding overnight. AAPL could also sink lower here into more oversold. The problem I had with holding was that AAPL is pretty sensitive to oversold readings and hasn’t typically delved into more than 1 oversold day in a row. So this time I chose to sit it out and not risk with an oversold reading on the table. Also traded DRV for gains as well all day.

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