Interesting thoughts on SPX weekly; 917 is an important point; and 1006 http://www.elitetrader.com/vb/showthread.php?s=&postid=2134482#post2134482
Even more interesting: -------------------------------------------- I think the worst is over Tuesday, October 21, 2008 12:38 AM From: "Hamzei Analytics LLC Admin" <Admin@HamzeiAnalytics.com> Last Wednesday thru Friday, NDX $wPut/Call Ratio hit 4.6, 5.9 & 40+ on huge $wVolume ($700M, $2.4B and $7.4B, respectively). That is a lot of put buying by the institutions (NDX options are NOT for mom & pop traders, even at normal vol levels (VXN stayed above 60 last week)). The last time we saw these $wPCR levels for NDX, it was during the 2001-2002 dotcom debacle. For those of you who remember my calls on CNBC back then, the readings at these levels for NDX are very bullish 1 to 3 days forward. We should expect 100 pt move in NDX in 3 days (registered 41+ today) which means, most likely, the AAPL earnings report tomorrow after the close, will be viewed very favorably . In addition, a major perma bear threw in the towel today, LIBOR had eased off overnight and US short-term interest rate went up. In the last hour, there was a lot mutual fund buying today. This is all good for equities. Bottom Line: The chance of revisiting the Oct lows is now highly diminished albeit not zero. All the best; Fari Hamzei Founder Hamzei Analytics, LLC
To keeps things simple we tested 8/9/10 SMA on daily and are bouncing from it. Very bullish if we will be able end well above 60.