Earlier in the week I said that I thought we could see some sideways to lower price action; so far we have gotten the sideways but not much lower. Based on the big sell imbalance Tuesday we think we should see some selling again today, then buying on Friday's close. Remember the exchange is open all day today, closed Thursday and only open for a half day on Friday.
The Thanksgiving holiday will only add to the low-volume drag. Many traders and trading desks will let people cut out early today and not return until Monday. If you are going to be trading, you will have to be very patient.
As more people drop offline the algos will still be blasting away, so slow doesn't mean the S&P won't be moving. It will be, and what we do not want to see is people getting caught in a chop. Our view is to sell the early rally and buy weakness, keeping in mind what's happened on the close the last two days.
As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.
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