I have outlined my updated levels below. If the low end of the range holds, the bullish intermediate “Trend” of higher lows in the SP500 will remain intact. Combine that New Reality with lower highs in volatility (VIX), and a breakdown and close in the VIX below 46.67, and you have the recipe for an Obama short squeeze.
You know I am not short that Obama option, and I don’t think your should be either. The step ups in my SP500 levels on a close above 886 are steep.
BUY “Trade” = 818
SELL “Trade” = 880
Keith R. McCullough
CEO & Chief Investment Officer