More Market Direction Intraday Comments For June 20 2013 – 1600 Broken

I had indicated earlier today that 1600 was important. With the break of 1600 we could see a rally back in a day or two but it is now resistance and the move is confirmed lower. I added more Spy Put Options around 2:04 when the S&P 500 broke the 1600 level. The continually testing for support was lost when investors moved away from 1600. On days like today it is best to stay away from Put Selling unless there are stocks you are looking to own and want to sell for very good premiums. I added to my Spy Put Options at 2:04 when the S&P showed an inability to push higher. You can see the trade time below for adding additional Spy Put Options.

The chart below from this morning’s market comments show that with 1600 broken we will in all probability break to the 100 period moving average within a day or two at most. Then we could see a serious bounce which I believe will fail as we enter into the weakest months of the year. I am expecting lower prices as we head into July and August and the markets seek support levels.

Summary Of Intraday Market Direction Comments

We may see a rally back attempt but I doubt it will be more than just traders covering positions and taking profits. The trend for now is lower. I will be posting some strategy articles to the members section later tonight.

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