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S&P 100 looking weak

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Last night I was looking back at some recent comments in the Market Monitor on OI and was reading some things Leigh Stevens had wrote. His thoughts were that near-term support looked to be the 570 level in the OEX and if broken to look for weakness. We've seen that today and my retracement now has bulls assessing risk to the 559-546 range.

S&P 100 Index Chart - Daily Interval

Bears are going to be picking up their short/put activity with today's break back below the 50-day moving average in the OEX.X. The last time this took place, the OEX saw selling and lower price action for a couple of weeks. With MACD edging below the zero level today, this is bearish and bulls should be defensive. I'd be buying puts and targeting the $560 level near-term and $550 level is a distinct possibility in the next couple of weeks. Resistance should be firm at the 580 level, which correlates with 19.1% retracement and still falling 200-day MA.

Jeff Bailey
Senior Market Technician
Option Investor

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