The major indices presented more trading range behavior yesterday – no surprise. We set the range Monday, finished at the bottom Tuesday, back towards the middle yesterday, and open towards the top today. 

So until options expire tomorrow, it continues to make sense to buy pullbacks one or two standard deviations below the 4200 level and sell when you are back at the level. If we break up above it, fade the upper bands back to the line. A great way to do this is to plot the volume-weighted average price (VWAP) with both sides of the standard deviation bands engaged. Anchor the VWAP to the Globex open. Perhaps you could anchor another VWAP band to the New York open after a few hours of data. I typically run it on a 5-minute chart.