The market had a quieter week thus far than it has in recent FED meetings. As we can see from the 60 minute chart of the SP 500 attached the market bounced off some trendline support today. I think that strength will be the flavor as we go into next week. The stock market is likely to find a footing and try to rally.

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Generally I think rallies are destined to ultimately fail, but nonetheless it can’t be too easy for shorts. A trip back to 3990 is likely and 4080 in SPX is possible. Until we see a set up we like though, we stand aside. Still have the SPY 370 March and May calendar spread we discussed, but it is much less time sensitive and we reduce our cost by rolling each short leg before expiry. The calendar spread is now down close to $7.00 after rolls.