I had expected a small bounce, then a test of Intermediate-term support at 1815.70 before a retracement bounce. Instead, the decline was shallower and the ensuing bounce a bit steeper. But it appears that the bounce may be (nearly) over already.

I have said before that on options expiration, you trap the most longs by not letting the market drop before noon, when trading stops on a particular set of options. Today index options (institutional size) stop trading at noon.

The decline may start at any time now. The SPX is ripe for a 100-point decline. Let’s see what transpires from here.

Regards,

Tony

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