Update

We obviously did not make a recommendation yet as nothing has happened that could potentially give us some kind of edge in crafting a strategy this month. Right now, it’s possible we’re in yet another triangle (we should call this the year of the triangle) as the SPX has etched out a pattern tracing the highs from 1328 down to 1296 on 5/22 and ever since. We note that this pattern at this particular place in the chart is technically not very bullish at all. We also note that it could be the precursor to one final leg down for the market before a scary run to the upside. So we remain in the same frame of mind as we did 2 days ago. We want to see lower lows to begin considering a bull put spread. We want to see higher highs for the bear call. The market will be closed on Monday so enjoy your holiday and we’ll revisit things again most likely after Tuesday’s close.