Another day, another 20+ point swing in SPX; on the sidelines for April 1 weekly trade entry.
Yesterday's 23 point intra-day price movement in SPX was yet another sign of indecision and the continuing battle between the bulls and bears. SPX closed yesterday at 1852.56, very close to near-term support of 1850 as seen on the chart below:
SPX 6 month chart:
As of this writing, futures are up slightly, however, there is still a lot of economic news to be released this morning:
8:30 am: Jobless Claims
8:30 am: GDP
10:00 am Pending Home Sales
It's anyone's guess what today will bring after the open; a move lower and below 1850 could give the bears some foothold. On the other hand, a rally off of yesterday's close could bring some needed strength to the bulls to take things back up.
Rather than risk live capital in such a time of indecision, I am not recommending a new weekly trade entry for today. I don't feel comfortable selling either puts or calls right now for such a short term trade. In my opinion, this is the time to sit on the sidelines and keep cash as my position for the day. I will wait and see how the close looks today and consider entering a new position tomorrow. I'll post an update in the morning.
As always, stay keen on your risk management and trade carefully.