The market is setting up unique opportunities this week and next as we anticipate the Equity Index Roll (SPX Roll). This is an important event that occurs every quarter and takes a toll on the market, so it’s important for traders to be aware of this.
The SPX Roll is when big money, firms, and institutional players sell and close out their current positions and “roll out” to longer-term expirations. The roll began today, Dec. 9, ahead of expiration on Friday, Dec. 17.
With this in mind next week, we will see periods of selling off across the market. Be mindful that if price action randomly starts to drop or pop, this may just be a sign of SPX Roll. What is more important is that we focus on our ranges to see if selling is just a result of the rollover or if the market is making directional moves.
In the video above, we’ll define these key ranges, discuss setups on our focused list, and define areas of opportunities to look out for as the market rolls on.
Stay Focused!