Today we have a dead cat bounce running into a an area of resistance around $138.80 – $139.60. Note the bearish divergence in the Force index indicator, and the inability of the MACD indicator to challenge its previous 2 peaks at this price range. Stochastics are overbought, and Implied volatility is oversold. 2 indicators at extreme levels providing us a nice risk/reward scenario. My general outlook on the market is that we will be in a trade range until October, so selling this rally as it hits the top of a channel matches up with my view. If the SPY runs down to $135 before May, these puts should be valued at $2.96 or greater.