I find that options expiration levels provide useful reference points for future market reaction due to the "market memory" of the expiration level. Because hedgers, speculators and traders all close out their positions by expiration, the level becomes a natural "oasis" for trading once the market returns to that level.
196 is a big level where 2 months had expirations.
Tim 9/29/2014
(Pretend you don't see the 8/22 incorrect triangle&line, the actual expiration is 8/15)
Comments
vlad.adrian
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Thank you Tim! As I said on one of these charts before, it's a pity traders around here don't pay attention to it. According to your chart, if the market falls below 195, there will be some trouble...I keep a tiny short position, but I hope that we will have some kind of small rally or sideways movement for a while.