(Small) Pullback Time

(Small) Pullback Time

SPY is set to gap up and open at 112.3. This is very close to resistance at 112.4. I will be entering an August dated put spread because it's high time SPY pulled back but it will be hard to figure out exactly where SPY exhausts and decides to turn around. I need to open a put spread as a hedge against my longs. This is a minor pullback and I don't see SPY pulling back much farther than 110.7, although 109.8 is also a good possibility. Also there is a gap to fill at 107.1 but this is a very remote possibility. The stock market looks strong and healthy and I expect continuation to 116 (after a brief pullback).

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