There is nothing more fearful than a large red candlestick that you can't control. :) As much as the market-makers may hope for good news, the fact is, the markets are all interdependent on each other. In this case, the uncertainty in the Italian elections last night drew blood in the US markets.
The bearish crossover of price to the Kijun Sen is a real sign that if the tension is not mitigated, it might be downhill from here on. A sequel to another Eurozone crisis? It seems to be so.
Will we see another bearish signal happening when the Kijun Sen cross and rises above the Tenkan Sen? It looks that way. The two moving averages are converging and if the markets takes another beating tonight, then we are gonna be looking at selling some Put Spreads. :)
As it is last night, I felt possessed enough to lock in a SPY Call Spread $154.5/155.5 at a premium of $0.04. The trade looks very safe this morning, but as they say, anything can happen in this market. But if it drops another $2+ tonight, I will surely be looking to lock the trade with a Put Spread. Exciting times. :)
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