Power to the people!
The Minx springs to life and another week of giggly wiggles has officially begun. While a portion of Friday's flow will likely spill into today's session, please be aware that the potential for a post-expiration hangover exists. In 2003, the S&P was down (on average) 14 handles the Monday following options expiry.
The financials and retail sectors should tell the tale in the S&P while semis and software will guide the Nazz. The S's and N's are both marginally above their respective 50-day moving averages (989, 1244) and those levels will act as first support. On the upside, watch S&P 1000 and NDX 1260 as resistance while Dow Jones 9400, SOX 400 and SPY 101 will be breakouts.
Other sectors to watch include energy (on the heels of higher crude), pharma (been uber-heavy) and the metals (gold down $5 this ayem). If (big if) the tape is to gain traction, it's gonna have to do so on heavier volume to get the technicians excited. Monitor the breadth, define your risk when possible and, above all else, think positive. It all starts within.
I'll be back.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
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