A rather pleasant surprise for our call options and long positions today as the market made a 1.618 move today instead of equal length. It actually came just 15 cents shy of this target on the S&P 500 cash.
This should have been a one day event however as the pattern calls for immediate decline after the relief rally. With this in mind we can safely call Friday a good test day as to whether or not the pattern will continue.
I exited my call options near the close today and entered put options as I fully expect the decline to continue. I only put on half of my put position however as I never like to hold a full line overnight. There are simply to many things that can happen.
Lets see what Friday brings us and we should be fairly clear as to what to expect over the next 2 weeks after tomorrow is out of the way.