1 – The EUR/USD pair initially fell during the course of the session on Thursday, but turned things back around to challenge the 1.08 level again. This is an area that has been resistive in the past though, so we would not be surprised to see a resistive candle. At that point, we would be put buyers but we also recognize that the market could go as high as the 1.10 level before actually firing off the bearish signal. We believe that there is plenty of resistance above, so quite frankly we have no interest whatsoever in buying calls.

2 – The S&P 500 initially fell during the day on Thursday, but found plenty of support below the 2100 level to turn things back around and form a hammer. This hammer of course suggests that the markets going to go higher, and a move above the 2110 level is reason enough to start buying calls. If we can break above the 2020 level, we see this market has been a longer-term buy-and-hold situation as far as calls are concerned.

3 – The DAX had a very bearish day, but sees plenty of support just below at the €11,600 handle. If we can find some type of supportive candle in that area we are more than willing to start buying calls as the longer-term trend is most certainly to the upside. Looking at this chart though, a move below the 11,000 level is really what it would take for us to be comfortable buying puts.