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With the final days of September down, October started out mixed with an "up a day, down a day" price action. The selloff really didn't start until last week, but by the end of the week the S&P began to firm. Who could have guessed that the S&P was going to reverse ship and rally over 5% so quickly? pullquote This morning global shares both in Asia and Europe are trading on fresh five-year highs. Today starts with the leading indicators number and some Fed speak out of Daniel Tarullo, Charles Evans and Jeremy Stein. /pullquote

Today the October options expire at 3:15 CT. Yesterday I thought the S&P would pull back, but the December E-mini S&P 500 futures (ESZ13) gapped three handles lower, made its low on the open, and rallied 20 handles. It's 6:00 am and the (ESZ13) is up 2.75 handles at 1730.75. Our view? The S&P has closed higher five out of the lastsix6 sessions for a total of 91.3 handles. While the Ned Davis stats show today as being an up day, we lean to selling the early rally and buying weakness.

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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