Watch 1040

This is one of my rare intraday postings. We are near the 1040 area in the S&P 500. This is the key support area. I think we will finally break below 1040. If we don't break below it today, I think one of two things could happen. We could get a little bounce as buyers try to anticipate this area acting as support. Any rally should be considered as a chance to enter put option trades. The other possibility is that we gap down below 1040 on the next trading session. This could ignite some panic in the market and we could sell off pretty hard. I'd like to add to my positions when the market breaks below 1040, but I might not get a good chance to do that. I might need to add to my positions today. I might wait until the end of the market to see how things are setting up. I expect the market to continue the downtrend through the end of the year. There will probably be some rallies along the way, but they will likely be similar to this last one. Make sure you give your trades plenty of time.