I had commented earlier this morning that the high should be in by noon, which is correct so far. However, there appears to be a triangle formation portending a high near 1231.00, either by the close today or the open tomorrow.
We are faced with one of two propositions: either the high has been put in this morning and we face a breakdown by the end of the day or overnight, or the market goes higher for the first hour of the day Friday before its major reversal.
The wait is frustrating, but you can see what lengths the market will go to avoid paying a liability. In other words, those 21,368 put contracts that I discussed this morning will expire worthless.
The decline will resume shortly thereafter.
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