1/19/2017 SP500 update

The recent market runs with a pattern: one day up, one day down. Tomorrow is Friday: the monthly option expiration day. Furthermore it is a big day for Mr. Trump: the elected president inauguration day! The days with so many events could be a volatile day. How the market is positioned to welcome the new president, same time for the monthly expiration is not a crystal ball. The OEX option chain still very bullish: PCR value is at 0.52. The equity pcr is relatively bullish too. Both charts are attached following:

http://schrts.co/gSVeo1

 http://schrts.co/RjNSBY

All option oscillators will not give the exact market daily direction. I prefer to use use as a bottom.top indicator by extreme values. For tomorrow's market,  I made several hypothesis move based price action. By the 2-hours chart, sp500 runs within a triangle, the bottom trend line of the triangle is formed by the low of Italy referendum in last early December and the low of the end of last year profit-taking sell off. There are 2 top trend lines: one acts as the top trend line of the triangle, the other acts as the top trend line of the wedge if triangle is broken out. The downside of 2240 gap fill is a possible extreme downside target, the upside could be touch of top wedge trend line around 2285. The several possible paths are labeled in the chart. It may take days to touch either upside or downside targets.

http://schrts.co/0ziR2t