Fractals

Was trying to buy SPY 143 puts yesterday, but it became apparent that there was a bid to the market. I ended up with 143 calls, no e-minis, and the 144 puts from last week that I've been hedging against. I'm going to go flat at the open.

The reason why is shown below. I think I see some order in the chaos that may explain the persistent bid. Below are possible fractals in multiple time frames: weekly, daily, and 30 minute.

It doesn't matter if I'm right or wrong at this point. The point is that whenever I see the market in harmony, I take note. I may not like the internals, but the market doesn't care. What matters is what the market does.

These charts project 1450 in the near term, and longer term 1550+. And they support Robert McHugh's broadening top thesis for a run to 1600 that I've updated here.

As I get ready to post this, futures are backing off from their overnight fiscal-cliff-possible-deal frothiness. The caveat to each of these charts is that there is ample opportunity for the market to probe lower, and I would welcome that. I'm simply trying to understand where the persistent bid may be coming from. It's starting to look like market geometry. We'll see.

Below 1400 is still possible. Below 1343 is still possible. Neither are off the table.