Editors Note:

This is the third consecutive Tuesday with a major decline that threw the market outlook into confusion. On both the prior Tuesdays, the decline was resolved with a market rebound although Wednesday the 24th started off with -30 point S&P decline.

Today the S&P futures are fractionally positive but the Chinese markets are worsening as the night progresses.

The S&P failed at resistance on Friday and Monday with a lower high on Monday. Today's decline was sharp but I am not sure it was sharp enough to fully compensate for the three weeks of gains.

I did recommend in my commentary tonight to buy a dip to known support levels but I cautioned about buying a positive market at the open. I would not be surprised to see a positive open that turns negative.

We should only launch new plays when we have a reasonable chance of success. For that reason I am not recommending any new plays tonight.


NEW DIRECTIONAL CALL PLAYS


No New Bullish Plays


NEW DIRECTIONAL PUT PLAYS


No New Bearish Plays