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- Equity markets on the rise post holiday with highest weekly settle since Oct.
- Positive news out of China. Opens door to closing trade gap.
- VIX has its lowest weekly settle since October.
- Earnings are coming up with Davos conference, ECB meeting
VolatilityIt appears volatility has run down with the run up on markets with optimism.
Contract Size - $50 x S&P 500 Index.
Tick Size: Outright: 0.25 index points=$12.50
Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time (ET) with trading halt 4:15 p.m. - 4:30 p.m.
Below is a weekly chart with widening of bands possibly indicating more volatility ahead if
Below is a daily chart. Price broke above prior highs and although not shown, MACD has turned positive in tandem with Stochastics. Forecast technical resistance levels based on Fibonacci retracement and expansion levels coinciding above the 20 MA at center of Bollinger Bands.
Below is an illustration of a bearish diagonal calendar to the downside if one's view were a further sell off to the downside. The structure has positive vega to take advantage of a hike in volatility. In the ACE Program education, we cover option strikes used.