I've been worried about the volume over these last two days. If this is a false rally, the market should sell off tomorrow. If it holds its current gains and closes higher tomorrow, the probabilities increase that the market will end up breaking out to a new high. This latest rally has already retraced over 70% of the recent move down. Each move higher decreases the probability for another move down. Technically the S&P 500 could retrace all the way up to 1371 and still move lower, but that wouldn't represent a high probability outcome. If the market does move higher tomorrow, I'll look at LULU for a possible Bull Call Spread trade using the June 100/105 calls. The market could have some choppy moves over the next few weeks as the bulls and bears struggle for control of the market. If this happens, the use of option spreads can increase your probability for profitable trades. If you are interested in taking my Advanced Options Strategies course (Course 2) or the Elliott Wave course (Course 3), email me at jerry@myoptionmagic.com to see if I can get you a discount.
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