The SPY Wave 2 trend regression channel has clearly been broken. Price ended Friday right at its key 300 round number support level. Whatever happens next week, and the weeks after, the SPY 220 level on the bottom right is the next objective. How fast and in how many sub-waves it takes to get there is just not known yet. We have to prepare for a range of scenarios, so trade and money management become paramount. With a Wave-3-Down wind at our backs, it will be hard to screw this up. Note how the July series' on Friday outperformed the percent gains on the August series. Also note that, (1) Even so, August's performance was no slouch, and, (2) That outperformance is a doubled edged sword, if the market goes the wrong way next week (Up) the July options will get hit much harder than the August options. I am gradually starting to switch out July positions into August. Going into next weekend (July 4th ) I should be in August for everything except VXX. VXX Chasing VXX spikes has been the kiss of death for decades. Nonetheless, this chart pattern is ripe for another run into the 70's, which would be triggered by taking out this month's highs: Closing high June 11th @ $41.61 and intraday high of $45.03 (June 12). FSLY Apparently the Wave 3 Down memo did not get delivered to FSLY, which the PRO Service went long on Thursday. It closed just off its highs on Friday, so there may be more strength coming next week.
