The Algos did run amok yesterday. After a few sell programs they did a few buy programs. This actually did go on all day. We suspect today will be more of the same.
Sure the S&P closed lower two days in a row. Big deal. It's only 15 handles off its all time contract high. We suspected that the ESZ would sell off a bit this week and we don't think it's over yet.
We leaned to weak in the first part of the week and firm later in the week. We were right: the boat got a little too full and now its needs to sell off a little and back and fill. The upside, however, is not over yet.
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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