As I mentioned last week, the potential for R2 of the February opex was a likely target and we did test that level and even closed above it. I’m expecting the front-end of this week to be bullish with Tuesday being the best day to sell some call spreads. Tuesday brings retail sales, Wednesday has the PPI, Thursday’s releases include the CPI as well as the Philly Fed manufacturing index and Friday is opex so plenty of catalysts this week to mess with my thinking.
An interesting aside is that put buying in the $SPX continued to outpace call buying last week. Put buyers are paying more (extrinsic value) for the protection/bets, despite the low implied volatility that is out there, which is typically perceived negatively. Not sure anything will come of this as most every other significant stats are overlooked while the insatiable bid under this market continues.