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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (14191)	6/21/2013 6:31:00 AM
From: John Pitera	Respond to of 33421

Agreed, it's not the end of the world...Japan and European equity markets are rallying and with it being a triple e witching the option writers will most likely engage in Delta Hedging and pick SPX 1600 level as the area that they will want to pin that particular index to. We had a nice few days of option volatility expansion and so now the professional option departments can take advantage of the people who paid up for short term protection. Crude is up some as are a few of the soft commodities. the currencies are digesting their large moves of the past several days..... Obviously with it being an triple witch...we could have a range of outcomes ...depending on what kind of action we get in the key yield curves, currencies and Global CB's......... the mean correction once we go beyond a 5% correction ..... there have been 205 corrections of greater than 5% since 1928... the average mean of the correction is 12%, which would put us at SPX 1475.... but that is not to say we would get there today..... The above SPX 1 year chart with the Elder Impulse system gives us some guide points..