Early today prices fell again to support and in some cases broke thorough, only to bounce back up above support by the close. Each test make support all that much more meaningful, because either it holds and the whole bearish thesis gets called into question, or, it eventually breaks and the worst case scenario, a hard and fast Wave 3 down begins. Our trading models clearly favor the latter resolution.
Below are the Nasdaq 100 Daily and 180 minute price charts, along with their respective trend regression channels and horizontal support levels.
If support holds though the rest of this week we may want to rollover any remaining December expiration puts into January. We will cross the bridge when we come to it, Thursday or Friday.