FUNDAMENTALS ON HOLD - Last week was mostly about waiting for the Fed to speak ( ), until a rather dovish took the market higher (Fed relief). This week is mostly about the upcoming US presidential debate and OPEC meeting. season also starts next week. Expect this uncertainty to bring some .
TECHNICALLY: LITTLE CONVICTION - While the was invalidated towards the end of last week, it did so with only mild confidence - The index remains above the top of the flag but below its 50MA. Short bias below 2160. Long bias above 2165.
TRADING CONCLUSION - I would refrain from trading the index until we get a better directional indication, hopefully this week.
FOR THE BULLS - Die-hard bulls would want to purchase SPY Oct 21 219.50 calls and pay a small premium (0.85 cents/share = 0.39%) to get exposed to a further breach of the most recent historical high, with minimal risk.
We are now back in the bear flag, and the market is feeling "heavy".
Awaiting proper breakout before taking any action on the index.
My sentiment is turning bearish, though.