Tracking Footprints

Repeat from yesterday:

I'm still viewing 1380-1400 as a sell zone.  It will likely take some patience.  The futures have gotten under an equivalent spot on the cash that I was looking for on Friday -- 1382.88, but I want to see this confirmed by the cash index in the regular session.  Even then, I still think there could be one more down-up sequence before the top is in.  For example, there are two trend lines targeting the 1395 area.  This means I will use dips and rips to play both sides.

The S&P did get below 1382.88 in the regular session, but did not do so in a way that suggested much follow through.  It looked more like a 3-wave decline -- a correction -- rather than an impulse.  I traded the weak afternoon bounce with SPY calls but went home flat.  Futures bounced overnight but did not make new highs.  Currently they look like they're tracing out a declining wedge.  Trading below 1381 would confirm it, but unless 1378 is broken it might not mean much.

Price charts are the footprints that investors leave behind as they act and react.  To me, these seem like tentative footprints.  Not much conviction for either side.  Even if the market corrects from these levels below yesterday's lows -- it could easily probe 1370-1375 -- I continue to see the 1395 area as a possibility.

Patience is the key.  Lions, cheetahs, panthers, tigers . . . each can stalk their prey for days when required.  The Fed decision is tomorrow (along with the full moon at 11:27pm EST).  The ECB meets Thursday.  And Friday is the big jobs number.  In the meantime, I'm still adding slowly to VIX 20 calls.