More Thoughts On A Correction

  • Next Friday is options expiration and expiration has tended to delay corrections. It would not be that surprising to see a correction delayed until after expiration. 
  • Momentum has tended to carry over to Monday's only to see a turnaround on Tuesday. Even though the market will not be maximum overbought until the end of the day tomorrow I would not be surprised to see a move lower tomorrow.
  • In an unbalanced global economy negative surprises can occur at any time. Overbought markets and negative surprises do not mix well. Most likely nothing will happen but it is something to consider.