Ugly day, but QQQQ is approaching a very heavy support zone, the July 2005 low at 36.54. In fact, NQ weekly S2 is at 1505, so one overnight push lower, or at the open, would set up a pre-option expiration week base of support. 171K puts were purchased today at 37 strike for a total put open interest of 467K at that single strike. That gives you an idea how far the bearish sentiment has gone. No guarantees in this business, but 37 holding up next week is pretty much a given.
This entry was posted
on Wednesday, July 12, 2006 at 4:04 PM.
