Option Rollover Day

Volume shifts from the December 2013 to March 2014 futures option contracts today with a difference of –6.25 points from ESZ13 (December) to ESH14 (March).

All previous chart numbers have been adjusted to reflect the new contract pricing—so, for example, the short-term primary trend line from the December contract at 1777.75 will now be 1771.50 on the March contract, and so forth.

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Screen Shot 2013-12-12 at 10.12.31 AM

We got a new short-term higher low at 1771.50 (1776.75 old contract price) yesterday at the close, as expected.  That line now becomes the key bull/bear line.  We are getting the initial stop sweep underneath this morning during the chaos of contract rollover–so now we watch with great interest to see which side of that line price moves.  If we get a breakdown that holds below that line, that would be the first paradigm shift.  Otherwise, a quick dip below that runs stops and then reemerges above would be a stop sweep/reversal.

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