December S & P
I said “it looks like the market is carving out a bottom but too early to tell.” I covered 2/3 of my puts on Monday taking a nice profit to help pull me up 1 ½% for the month. I do not find it prudent to hold them all before the Fed speaks. Also, as I have talked before about valuations appear attractive. Stocks will try to go higher after Tuesday’s action. The biggest rally I have ever seen in the S&P should see some back and fill on the chart. I am wary this could be a bear trap and would not be aggressive. My resistance was 1950 from the actual high and my support was 225 from the actual low. The range was an unbelievable 115.50! Even during Sept. 11 the ATR was around 35 to 45 handles, now it is 73, amazing! Trading with a known risk is in order. Trade the numbers
The downtrend line key becomes pivot(al) around 925.00. Double bottom chart formation is intact. 99275 (last week’s high) is resistance now. If 825.00 goes, look for a retest of Sept. 11, 2001 lows of 767.25.
Major resistance: 992.75
Minor resistance: 969.25 XX
942.75 Pivot
Minor support: 916.25
Major support: 825.00
Howard Tyllas is registered with the CFTC as a floor broker and CTA. He’s a member of NFA and a veteran trader of 33 years. He has traded options on futures since their inception. For information on how to get Howard ’s analysis and support and resistance numbers on additional markets go to www.howardtyllas.com .
