Market Will Make A Higher Low - Wait For That Pattern - Then Sell Bullish Put Spreads

One Option Trading Blog http://ift.tt/1OMDtjc Posted 9:30 AM ET - The market tanked last week and it tested support at SPY $182. That was the August low and we saw a sharp intraday reversal on heavy volume. A major support level has been established and prices should stabilize. We've seen very heavy selling the last three weeks and I mentioned in yesterday's comments that an aftershock was likely. Stocks tried to move higher yesterday, but late day selling pushed us down to SPY $187.50. That is a horizontal support level and it held. I still feel that there is more work to do on the downside. …