17 August 2011

SP 500 and NDX Futures Daily Charts - Uncertain Seas Ahead



As a reminder there is an options expiration for equities on this Friday.

A reader informs me that OptionsHouse increase the margin requirements for options to 100 percent today. Someone obviously expects some turmoil and wishes to reinforce their extended value at risk.

I was not encouraged by the failure to rally above resistance today, but in the short term anything can happen, especially with plenty of hot money and light volumes at traders' backs.