Hi Shoppers,

Wow! What a rally!

Right?

Check out the trading range on the E-mini S&P Futures (Ticker: ES) from Thursday night to Friday:

Once the Amazon earnings were released at 3:25 p.m. ET, ES sank down to $3,757 but recovered by 6 p.m. back to $3,800.

Then, by Friday morning, we opened higher at $3,818 … and from there, there was no looking back.

We rallied straight up to a high on the day of $3,924, before closing at $3,911.

That was a $167 swing in the ES!

A huge move.

Now that all the big tech earnings are out of the way, what we have left is the Fed Meeting on Wednesday, Nov. 2.

Seems to me the market already knows what the Fed’s plan is, and it has been digested.

So where do we go from here?

You must read on and I have a new trade idea …

The Resistance

While we had this massive rally, I am seeing some resistance in the S&P 500 here. Another look that the E-Mini S&P 500 Futures (Ticker: ES):

And the S&P 500 (Ticker: SPX):

The chart looks bullish, but we could see a pull back.

To take advantage of a pullback, let’s look at the ProShares UltraPro Short S&P 500 3x (Ticker: SPXU):

It has closed right near old resistance, which is new support AND the 200 day moving average which provides support.

Looking at the options, I like this Friday’s expiration:

If the market opens and trades lower, meaning SPXU will  open and trade higher, I will be looking to buy the Nov. 4 17-strike calls.

Be sure to wait for at least an hour of the SPXU trading higher before entering a position.

This could be a quick pullback, keep a close eye on it.

Trade Review

I did buy the Delta Airlines (Ticker: DAL) Nov. 4 34-strike puts, which are down now. That huge rally dragged DAL up with it.

I think this could still be a winner. If DAL doesn’t trade lower tomorrow, I will take my loss.

Thanks for Reading … See You Next Tuesday.

Licia Leslie