$SPY, $FXI, $VIX Option Activity, SPY Chart Analysis (S&P, China and Volatility Futures)

Watch VIX, FXI and SPY option alerts courtesy of optionMONSTER TV (Volatility Sonar Report and RMBrenna). To your left (click for larger view) I put up a 6-month chart of $SPY. There was big red volume today on the 1.7% sell off. The riots in Egypt, earnings, economic data or market exhaustion all could have been catalysts. SPY's Relative Strength Index (RSI) took a sharp fall on Friday, closing at 52.88. The RSI was above 70 for a month. Watch the uptrend line and 50 day moving average for potential support or violations. Maybe the trader believes SPY will find support at the 50DMA like it did in November, before February expiration. Lastly, on 1/26/2011 Tom Demark (DeMark Indicators) told CNBC that the market could fall by 11%. The S&P lost 1.79% today. Seems like yellow lights are flashing. We shall see.

Volatility Sonar Report 1/28/2011 (VIX call options)

courtesy of optionmonster.com

RMBrenna on 1/28/2011 saw a SPY put fly and FXI puts trade. Wow, that SPY trade could turn $3.6 million into a $160 million profit if it settles at $125 by Feb expiration! It closed at 127.72 today.

courtesy of optionmonster.com


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