Cutten, the next level will be 1126.50 in the SPX. That is where this second leg down will EQUAL the first leg down off the highs.
87 was twice worse than 29 in % terms. To put 87 in perspective: It would be the equivalent of the Dow dropping 2200 points this Monday.
89 sucked because it came out of no where. A slow Friday and then WHAM! All started because UAL was halted on news of the employee buyout failing. Scores of premium sellers were knocked out of the box. That being said I too think Monday could be REAL ugly. As Samson said, way too many up Monday openings for me to think that pattern is going to last. I generally fade moves. I'm the antithesis of a trend trader, at least in the indices. This is the type of break I would usually load up on. HOWEVER, I smell something MEGA corrective in the air.
someone please tell me that IBM cronies were not short the market into expiry... I would bet any amount of money that is true. There is absolutely NO reason to schedule an earnings date and then unlike ANY OTHER prior release.. they decide to surprise the markets by releasing right before expiration. I'll bet there are people who will read this and think I am over the edge... but in my view there are no ethics when it comes to Wall Street, and it is my strong belief that companies who schedule earnings releases and know they are a major component and bellwether company has some obligation to commit to and honor the date they have stated on the record. Frankly its a disgrace that this occurred with impunity and gave fuel to move the market lower. Please, tell me my "conspiracy" paradigm is not accurate! I wonder if anyone else belives there is any impropriety ?! ICe
Hey Ice . . . How do you think those IBM market-makers in the options pits feel? They have got to be so freaking pissed that they feel like getting ahold of an AK. A total hose-job for them.