S&P Futures Chart 1mo

2 Possibilities for the S&P

Here are two recent follow throughs after a major drop in the S&P Futures / SPY. This is worth watching; will history repeat itself?

S&P Futures Chart 1mo

Under both conditions we retraced 50%, saw a dead-cat bounce and pulled back again 2 days later, but under the first condition we pulled back hard. I wouldn’t be too surprised to see a similar scenerio over the next week. I’m monitoring a 50% retracement and would reenter bear spreads. I like the July 130/125.