Increased put activity at the May 42 strike for QQQQ might surpise those who expect the markets to fall apart soon. Granted the 43 strike has some serious call resistance, but we could very well be stuck in that tired range between 41 and 43. Right now, look at 41.74, 50% 2006 support and the 50 dma just below at 41.62 for levels to hold for bulls. Resistance is pretty clear around 42.10/42.15. Trade the range, i.e buy support/sell resistance, and be ready to catch the break either way.
The Monday morning set up is pretty basic with NQ (NDX e-mini-futures) confluence of daily and weekly pivot at 1715.75/1716, the fulcrum for the day.
This entry was posted
on Sunday, April 30, 2006 at 9:56 PM.
