Short

Breaking down into OPEX

We head into monthly options expiry (OPEX) on Friday and that may influence flows and price action in the US500, but for now, the equity bears are starting to get some traction. We saw the bulls try and take price above Monday’s high (4493) but they failed and the index closed not just below the range lows, but through the 50-day MA. Outright shorts remain challenged as implied vol is still so low (the VIX sits at 16.46%) and China could easily bounce (such is the extreme negative sentiment), but traders are betting on downside and the index looks likely to test 4385 in the near term.

Pepperstone

Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD

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