Key Levels are named for their importance in transitional phases of the market. That most of the key levels we have been identifying have held up over the past few weeks was the market's message it is not ready for that next leg down, yet, so we wait. Once the dust settles from today's "warmly" received inflation report we will look for new entries for the next round of puts, although any January 20th positions should weather this temporary storm as well as be in position to benefit should tomorrow's FOMC news not be so sanguine. IWM The big bad "bullish" news of the day was able to take IWM back up into its Fibonacci Retracement Zone where it has stalled and we await another drop below 180 to trigger a repeat entry signal for IWM Jan 20th puts, $180P and/or $175P. Once below 174 we can expect an acceleration down as the index takes out the late June and late September Wave 1 lows. IWM - Short-Term (30 Minute) Half today's gains are already gone and a negative close today, inconceivable just after the Open with the Dow up over 900 pts, would set quite the bearish backdrop for tomorrow's FOMC announcement, as would IWM taking out yesterday's low of 178.00.
