Good morning All,

We’re in touch to point out that the SPYs essentially made it to a key level near yesterday’s lows.  The SPYs briefly fell below our $260.00 target level from last week for a short while before rallying yesterday.

With many bear names from last week, we’re thinking that rolling down aggressively if you’re still bearish wouldn’t be the worst idea, assuming you can.  Why?  Well, the volatility that we anticipated would persist, has persisted, and that could continue and could produce another sharp rally like the one we saw on Monday.  We have a sense that after all the heavy selling, market players would love to use news to offload shares higher.  We’ll soon see if they have the muscle.

Be back in touch with more when warranted.

Thanks,

Wayne