We finally got some volatility last week and a big short squeeze. Was a pretty good week to trade, but I’m not expecting much this week.
It’s a short week and I plan to take most of it off, but we’ll see if anything happens worth noting. Here’s some paths I’d expect for ES in the short term. So far ES failed after about a 61.8% retracement. Fairly big range from 5,800 to 6,100 and we’re almost right in the middle so not the best place to be opening new positions IMO.
Might be interested in puts at 6,100 or calls if it reclaims. My best guess is that we’ll hit 5,800 soon until the Santa rally starts after Christmas. That would fit with charts and seasonality but after that squeeze I’m not sure it goes back down anytime soon. Overall looking to let things shake out after FOMC and come back at it after the new year.