Update

Sure enough, the market did not sell off beyond our kill point, which is now looking increasingly like 1386 in order to officially call the rally over. Instead, the market held the trend line beneath it and rallied a bit into the close. It’s too early to say, but we are not convinced that a larger scale top is in yet. We could very easily rally into the end of the cycle, making a bear call spread dicey. If we take out 1386, then we’re prepared to call the rally over, but it will make getting a bearish spread unlikely given how far out of the money we can get. Tomorrow will be the final day we decide on whether to do something or not for this cycle.