GOOGL and MSFT report earnings later today, AAPL on Thursday, next Wednesday is FOMC and Powell-Talk and the week after that, the mid-term election. Somewhere in that time line the countertrend retracement rally will end and indices will in unison break below October lows. SPX - 120 Minute Above is a 2-hour SPX chart and my best approximation of where this pattern is headed in the next two weeks, while the chart below goes into early 2023. Currently, and for the next few days, price can go higher, sideways, or down, but coming out of the two-week window price will be headed lower and the set-up is for a steep and fast decline, consistent with third waves coming out of overbought conditions. As of this week, the Nov 18th options expiration still provides the best risk:reward profile, but if the market goes much higher, or stalls for more than a few days, we will begin considering Dec 16th and/or Jan 20th expiration strategies. As for the latter, the UVXY Jan 20th $20C is a high risk high reward strategy (Special Situation Alert) and having even a small position tucked away is advisable in this kind of environment. Volatility is a sleeper cell, biding time before eruption. SPX Daily DJI - 120 Minute DJI - Daily
