Option Rollover Day

Volume shifts from the December 2015 to March 2016 futures option contracts today with a difference of –7.75 points from ESZ15 (December) to ESH16 (March).

All previous chart numbers have been adjusted to reflect the new contract pricing—so, for example, the intermediate-term primary trend line from the expiring December contract at 2025 now becomes 2017.25, and so forth.

.

Screen Shot 2015-12-10 at 10.25.05 AM

.

The old VST range bottom at 2032.25 (2040 on December contract) didn’t hold up–so we are still looking for a ST higher pivot low to eventually form, ideally above IT primary trendline support at 2017.25 in order to eventually flip the multi trend rating back to a Bull 10.

.

Screen Shot 2015-12-10 at 10.19.13 AM

.

As you can see by the embedded rectangles on the daily bar range chart above and echoed in the Stops and Targets summary tab…this continues to be a rangebound market in all three major timeframes.  We are still waiting for the VST to settle after a downside breakout yesterday followed by a stop sweep recovery back inside the old range.  The VST trend has a pattern of shallow lower highs and lower lows –but sellers won’t return unless price drops back below 2032.25.  Yesterday’s low now at 2026.50 becomes the new VST provisional low–and the 5 day (short-term) cycle clock is reset.

..

.

Screen Shot 2015-12-10 at 10.26.15 AM

.

Next VST upside targets are minor resistance at 2057.75 and then the descending VST trendline currently at the 2076 area.  Next targets lower would be IT primary trend line support at 2017.25 and then ST at 2004

Today’s rollover is the first of three key dates to watch…followed by the FOMC rate announcement on December 16th and then year-end OpEx on the 18th

…my .02

.

.