SPX Won't Break 3400 tomorrow, flat or red day prediction

١٩ أغسطس ٢٠٢٠

SPX is has slowed down quite a bit and is struggling to post gains. I believe we are going to enter a downward correction over the next few days. I use Ichimoku Cloud for my options trading analysis and everything is pointing towards a downward push. On the intraday chart (3 min) we have a TK cross to the bearish side with the close below the cloud showing a strong bearish bias. On the daily we are seeing the price consolidating down and getting closer to the Tenkan line which is currently hovering at 3354. I believe that line will be a support line for at least a couple more days, however the 45 and 1 hour both have the same Tenkan line at 3382 and all very flat at that point. I would expect the market to bounce off of 3382 tomorrow and hold above assuming some royal flush doesn't happen prior. Now with the Fed being the Fed I am also open to the 3400 line being broken tomorrow in which case 3412 seems the most logical (if we can even use that anymore) for the top out.

Game plan for expiration day - Sell a vertical call spread for 3400. I might consider doing a Iron Condor as well with 3400 and 3260 but that would depend on the futures and what range they develop overnight.