S&P 500 Nov 24 to Nov 28 Outlook
Last week was one of the most volatile option expiration week in recent months. Y-0 held early in the week gave us a run to Y+2. Y+2 rejected we got a drop back down to Y-0. Eventually 2nd try breaking Y-0 failed, ES zoomed higher back near week high with China making their sudden rate cut announcement. ES jumped to 100% expansion of the week range at the time and stalled. Closed the week above Y+3 and midpoint.
The continuous shocks sent by the central banks worldwide is amazing to watch but difficult to stomach if you are on the wrong side. The renewed volatility last week is giving us a hint that we are going to see renewed increase in volatility going into this holiday season, unless this week the volatility immediately dies down to enforce the usual start of the year end rally.