Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Look where the large specs and commercials diverge/converge and the areas where the trendline breaks are in the charts...very good information there....
Click the "Quotes" from the main menu bar and select "Option Chains". Then type "SPX" as the symbol and select "Call Spreads" or "Put Spreads" from the "Type" drop-down menu.
Then click "View Chain". You will see a menu bar below the SPX Expiration Months. Select the spread from the "set Interval" drop-down menu - 5,10,15 etc. and check the "Credit Spread" button. You are home!
Right now this is only available for the SPX and stocks. It would be nice to see this for the futures contracts also. I just sent that to their wish list.
We formed the double top I mentioned last week ( actually made a higher high) but look at the delta divergence. We currently have some 230k contracts net short but holding divergently and about 100k net longs off the 1530 low. I am also struck by down day volumes being greater than up days and the declining volume on the last leg up.
This makes me think sellers are still in control, they have let prices rise on low volume by easing up on their selling. I can see a repeat push down to 1530 if they start to sell aggressively as the current longs will quickly sell to cover their profits. We are now in the "sell in May" time as well.
The other scenario is that sustained buying will be needed to once again push out the shorties. The reason I think this unlikey is that funds are 97% invested so there is little money left to chase up prices.
Lots of bearish divergence showing with several indicators as well. I'm letting the employment numbers work their way into the markets today and will consider a position next week.....