In our free weekend newsletter, we said:

“This week is options expiration week and normally the market moves in the opposite direction that most people think or shall we say are emotionally invested in.

That all said when we look at the daily chart of the S&P 500 we see from a technical indicator standpoint that of us being very close to a bounce (full stohcastics wise) and we need to be aware of that.”

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And that’s exactly what is transpiring! Check out the chart below.

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The real action though is the OTC Comp., we talked about the 61.8% fib level
and we talked about how the OTC leads. Here’s the chart from the 13th of Aug.

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Here is the current chart

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In addition, we pointed out that we had a watch list full of stocks that were building out a lot of Pullbacks Off Highs (POH) longside patterns and that is telling us something. It tells us that soon to expect a move to the upside, at least in those names anyway. This is how the market talks to us.

Here’s how a few of them have fared since this weekend:

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Triggered a long side trade Tuesday morning by breaking above the pink line at 16.50!

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Wow!  The September 50 calls were featured in our options watch list at 9.80.  In just two days they are at 14.40!

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With each of these, they have formed long side pullback off highs patterns as shown by the pink line. A break above the pink line triggers a long side trade. And that’s what each has done.

And they’ve done it in tandem with the market.

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