15 August 2011

SP 500 and NDX Futures Daily Charts - Options Expiration Week

As a reminder this is stock option expiration week.

Stocks were in rally mode today. The volumes were a little lighter than last week's downdrafts. Some might call this a seller's strike.

The key question for the intermediate term, is if this is a bear market rally, or a bull market correction.

The charts may provide us some information there.

The correction from the long rally proceeded as far as it possibly could before it would be called a new bear market.  We are now seeing what might be a technical bounce.

It is the continuation from here, perhaps after this option expiration, that will let us know if this is a bull market correction, or a new bear market. 

I am reasonably sure we will know by October.