A.M. Update

Although today is an option expiration Friday, which may be what the save in the market was all about yesterday to inflict max. pain today (although I still think this is about unfinished business in the form of an upside head fake move to complete the upside reversal process back to the downside as this cycle has definitely spent the gas in the tank from 8/1 to 8/8), the tape artistry , painting of course was notable after the cash close where the rumor is a Citadel algo under the direction of the NY F_E_D ramped the close from red to green and +SPX 200 in millisecond, just a little after the close.

That theme continued overnight as futures hit the week's low yesterday morning, so they hit the week's/all time highs this morning supposedly on the back of a lift in USD/JPY, lifting SPX FUTURES to +2000 for the first time, although they lost 2000 shortly after and sit right below.

ES hits >2000 this morning.

Is this not exactly the outcome I described yesterday? A test of TA support at 1991 and recapturing 2000? It's all about using what you have and continuing the BTD facade, but I suspect the head fake move will be here, likely early next week as today is op-ex and there will likely be a max-pain pin. The head fake move is not something I'm worried about, it's something I'm looking for and looking forward to as that's the pivot to take action and one of the best timing indications of a downside reversal from the August cycle.


Other than that, sovereign European yields keep testing lows as European inflation printed at a drop , coming in at .3% while jobless numbers are near record highs. While this puts pressure on Draghi to act, the German Finance Minister came out overnight and said no to ECB QE, the same as what Reuters reported earlier in the week so mark Sept. 4th on your Calendar.

For now, we have an op-ex pin that should fade by 2 p.m. and that's where we tend to get the best data for the upcoming week, the last 2 hours.