The Day Before Expiration
April 20, 2006 · Print This Article
Over the past year the day before expiration has been, for the most part, directionless. However, the day after expiration is a much different story. The day after expirations has historically been a bearish day and particularly in April. Hopefully, I can capitalize on this seasonal phenomenon tomorrow. If the market manages to hold at current levels the probablity of a bearish Monday are even greater. Given the current overbought situation in DIA and SPY, any move higher will mostly likely be limited and quickly sold off. I have seen stranger things happen but this seems to be the pattern of late.
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RSI Wilder (5) for April 20, 2006
SPY – 74.0 (Overbought)
DIA – 77.8 (Overbought)
QQQQ – 60.6 (Neutral)
IWM – 69.0 (Neutral)
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