I’ve been thinking we are overdue for a pullback. Looking at the chart of the SPX on a weekly basis, it has closed above the upper Bollinger band for the past two weeks. Looking back the past 10 years it has rarely done this even for one week where it closes above the upper BB on the weekly charts. When it does, it pulls back. With two weeks above the upper BB, we are due for a pullback based on technicals and charts. I will be expecting the expected this week in that regard. I’ve got “too many” call spreads on right now, just like I had “too many” put spreads on a couple of weeks ago.
Be careful, but expect the expected.