It’s been a volatile and exciting trading week due to options expiration (OPEX).
This week’s price action captures what we can expect during OPEX and volatile times. The market has seen chops, pops, and a big drop.
After the S&P 500 (/ES) dropped near $3,855 on Wednesday, the question now is if we see another significant move on Friday.
For the market to pop, the /ES has to break through the $3,900 and $3,928 range. Then we could see a push to the $3,980 to $4,000 zone.
If the /ES rejects the zone from $3,900 to $3,928, we’ll look for the market to retest the low from last week at $3,855. Below this level, the market could fall to $3,843.
Remember the importance of liquidity and major zones. Trading zone to zone can be especially useful during a volatile OPEX week.
In the video above, we’ll review the price action and zones of the major indexes and the SHOP setup we’re keeping an eye on.