Expiration Week

In isolation the fact that this is expiration week makes it less likely that we see a turn lower. Trends have tended to persist through expiration and currently the short term trend is higher. In general, the indicators favor a higher market through the end of this week. Sentiment indicators still show a high level of negativity and the market will not be overbought until after expiration.

That said, we have shot up 70 points and I am growing a little weary. While the indicators are not showing it yet sentiment has definitely improved and as I outlined yesterday, I am feeling more neutral despite the positive indicators. The move lower this morning is definitely better for those that want to play the upside than a gap higher but I don't see a great setup.

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