Air Pocket

Last week the market hit a significant air pocket. Our analysis has a year maximum of between 1670 and 1700 ( with a 'shadow' of 1730 ). The recent top could well signal a reversal in the coming months. We would like to see a re-test of the 1680 level without a significant break above 1690, to confirm such a scenario. We will go short above 1680 with 3 contracts, setting a stop-loss at 1693.