Re Market (and X),
Market:
After a substantial rise, $SPX is making a black candle today on Stockcharts' chart. The black candle means that SnP opened higher today then went into a decline. That produces a black candle instead of a red candle. A black candle after a significant rise should be treated as a bearish signal, and that should nullify any other Bullish signal. Even if SnP closes the day higher than yesterday's close but doesn't close higher than it opened today, it is still a black candle and a bearish signal. With high probability, a black candle at the top of a run means that a multi-day selloff is high probability very soon.
X sold off hard after the open today. Keeping to my strategy for the Call Spread I have on X, I felt that the decline was large enough that I should Buy-2-Close the Call that I sold when setting up the trade. Buying it back cost me about one-third of what I received when I sold it, so that part of the trade had significant profit. Now that significant time has passed since I did that, I see I could have done better. Oh well. My earlier thought is that SMA(20) will act as support. I checked the recent news and couldn't find any reason for the selloff.
I still have the other side of the trade and it's got a little over 3-weeks left, so on a bounce I'll look to sell Calls again on X as I explained in an earlier post.
