Hi All!

With the futures markets indicating a lower opening for the major indices, that could push some bearish names down even further this morning and that would include last week’s bears and this week’s SYY.  When volatility picks up, we’ve always become more aggressive rollers in our career because the markets become very oversold and then gyrate back up quickly quite often before selling off again.  We wanted to plant that seed so folks can be prepared to act that way if opportunities present themselves.

If a significant down opening occurs, SYY could reach our first target level in the mid-$69.40 range.  For those rolling down still with last week’s bears, we’d keep doing so every time they take another significant plunge.  That’s just how we roll for a variety of reasons.

The 150 and 200 SMA aren’t too far below in the SPX so it’s possible that it will find support there, maybe attempt a rally for a little while, and then we’ll see what develops from there.

Cordially,

Wayne