I stated there would be some kind of selling action at the Fib 50-61.8 yesterday. My expectation was a mild push to retest yesterday's break out area or the low of the day. I started to enter bull puts when prices came to these area this morning and noon. But the selling continued a wave after a wave. It accelerated after 2pm and was well controlled. It ended to a near 40 points, 2% drop. ES closed at 1826. I don't even remember when it happened last time. My 1850, 40, 30 puts are all under water now. I am preparing to roll out these positions and exit others with B/E or partial profits to reduce risk tomorrow just in case another follow through on Friday. It appears the correction just started and we have more down side to go. Fib 23 target and 200 SMA are at 1817-12 area. Volatility is picking up. I had a Vol 19 call filled at 25.
Grains lowered today. SB is forming a HS on right shoulder. Wheat broke the low of current balance area. Corn was down but pushed back to mid at closing. CL held its up posture well.
Tomorrow is going to be a busy Friday with roll over and risk off trade. Be prepared and disciplined.
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