Sunday, March 17, 2013

Cyprus Hill

The selling here is Insane in the Membrane.  The post options expiration forces at work are greater than the inconsequential news out of Cyprus.  You had a rally that was overextended going into options expiration, the following Monday had better than 50-50 odds of a gap down. As I stated last week, 1560-1570 zone will be a bear to get through, as there is a lot of psychological resistance at the S&P all time highs. 

If we open down over 1% from Friday's close, it will be gobbled up at the open by funds looking to get long exposure into a down tape. 

1 comment:

Anonymous said...

Well... you nailed that one!