June 23, 2017

Gap Tendencies and the Options Expiration Aftermath

Below is the large gap from Friday. As I have stated repeatedly in the past, gaps in the major benchmarks have a tendency to fade sooner than later especially when they are as large as the one from Friday. Couple the gap with the historical tendency for weakness on the day following options expiration and the probability of a declining day Monday increases substantially.

I just wanted to point this out before Monday’s open. I hope all of you had a wonderful weekend and newsletter subscribers please check your emails for the September Expiration report.

As always, if you have any questions or comments please do not hesitate to email me or use the comment section at the bottom of the most recent post.

Gap from 9-21-08