Our #1 market bellwether failed to create a bullish impulse leg on the lesser charts with its last leap, buttressing the evidence that April’s 644 high may endure for a long while. Bulls and bears have been dueling since, hinting that summer is likely to bring more tedium, not exuberance. If you hold a long-term position, consider selling ‘strangles’ against it, since they are quite rich. Selling the July 560 put/590 call, for instance, would fetch about $2700, establishing a theoretical profit zone stretching from 537 to 617 for the options portion of the position.
