Futures are down this morning while the VIX has been rising since 8 am. The SPY is currently sitting at 335.45 in the premarket after having dropped from the close yesterday though it has bounced off a low this morning of 334.32. We are looking at a potential full point and a half gap down.  In the premarket charts at the moment we see that the 10 moving average line is barely above the 20 moving average line on the 10 and the 15 minute charts and below it on the 5 minute. We also continue to see low volume this morning.

The SPY is sitting right above an important support line of 335.22. We aren’t far from the next possible support at 334.90. Our momentum indicators are mixed at the moment but there isn’t much volume at this point. But because the VIX continues to rise this morning, one should be going with PUTS again. If the SPY moves up at the open I would wait for a reversal off a resistance line like 335.85 or 336.25 or the VIX moving back up or I’ll look for selling volume to confirm my decision. But Breaking hard through 335.22 is what I’m looking for.

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