Options Outlook: Watch Small-Caps On This Holiday-Shortend Week

Last week, the broader indices bulls reversed the prior week's red candle almost exactly. The small-caps, on the other hand, are still lagging.

The small-caps will likely lead the next big move direction not yet determined. Traders are better served watching the Russell 2000 and the iShares Russell 2000 Index (ETF) IWM for the real "market" appetite without the impact of mega moves in mega-caps.

Apple Inc. AAPL is still in a battle to conquer $120+, but the bears have not yet made it easy. Sudden renewed exuberance in Alphabet Inc GOOG GOOGL may take away from the interest in Apple.

Related Link: The Former Hewlett-Packard Highlights Short Earnings Week

With Saudi Arabia seemingly stating that they are ready to work with OPEC and non-OPEC nations on the stability of oil prices, this could mark the end of the oil war between Saudi Arabia and the United States. Oil prices may have bottomed on Friday. Economic reasons could drive oil lower, but if the headline is correct, this may be the end of the Saudi's efforts to keep oil prices deflated. If so, then start evaluating oil giants based on economic merit. Rallying oil price could aid equity bulls in the short-term.

Except for Google, there were no major changes to open interest: Prices are facing resistance territory, but with a good support base. Although not assured, the potential is to break out.

The IWM (small-caps) is once again important to watch as it has the tightest of ranges.

Watch out for weekly credit spreads on this holiday-shortened week.