I have been waiting for the past couple of days to see a fairly decent correction in the markets and I think we are going to start the process today. Options expiration week is always known for having large swings at the end of the week. My opinion is that we will have one or two smaller days before a big move to the downside later in the week. Of course, the move back down to 730 on the S&P will not happen in one day, but I’m sure we have to get down near that level sometime this week before we move any higher in the short term.

My portfolio continues to stay very very hedged with an equal amount of shorts and longs. Still, if we start to move ANY higher today, I’ll be buying some more index puts for sure. Above are my new targets for the S&P. If we reach the first resistance level above us at 790, you had better believe I’ll be buying up puts. On another note, I also have a chart of the S&P weekly pivot points. As you can see we are very close to the first R1 resistance zone. And look how far away the closest support is from here - all the way down at 700.