Tuesday, November 16, 2010

Stubborn Dip Buyers

The dip buyers have been so well rewarded over the past 2 1/2 months, they must be chomping at the bit to buy this "dip".  This doesn't feel like those past dips because 1) we are much higher in price 2) sentiment has had time to get overly bullish and complacent 3) this dip has lasted longer than all the others. 

I believe options expiration will help to control the downside this week, so we shouldn't close out the week under 1175-1180, but next week could see us have the flush out after the moderating effects of options expiration is removed.  Expecting lower prices later this week.

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