Storm Watch

Further falls ensued this last week as we expected. Unfortunately, with the release of a good US GDP number on Friday, the market rallied off the lows moving the market out of the 'oversold' territory that would have provided a full buying opportunity. As it appears this may be a blessing in disguise as a number of factors come into play this week with the potential for sharp swings one way or another. The huge storm off the east coast may turn out to be of the teacup variety, alternatively, if it combines with other weather fronts, large scale damage could follow. We also have the month end on Wednesday, which may influence movements in the latter part of the week. Company results continue to show weakness and election jitters will also be restraining factors. Levels where we would initiate a small trade are below 1396 where we would buy 3 contracts and above 1445, where we would sell 3 contracts.