After reaching 50; sideways to lower. downside targetsAfter reaching 50, as expected some sideways action. sold the 52c around 1.05 around 2 weeks ago.
I am neutral, because this looks like a correction of the prevailing uptrend as indicated in the dark red trendchannel.
Downside support are the blue trend line at around 48.20 and the 20 day MA or middle BBand.
Further on the downside we are looking at the lower trend channel between 46 and 47
For now I am covering the 52 calls and wait to sell some put spreads or puts until we reach the lower trend channel
Sell-volatility
S&P 500 selloff's becoming increasingly violentDespite what the VIX index may be telling you the image is clear that the sell offs are getting relatively harder and faster. As volatility cycles increase in amplitude and frequency we see an increasing amount of "one in a million years" events happening weekly. Between flash crashing, system bugs, pricing errors or whatever else it needs to be called liquidity is not there when its needed and its leaves firesales as the outcome.
I expect to see increasingly violent moves in the S&P 500 as the business cycle comes to an end. Whilst circuit breakers may be in place to 'physically' stop these sell offs, instead the pressure and desperation shall build and cause knock on effects elsewhere in other securities.