We are seeing a rebound this morning from yesterday's oversold condition. I believe we have seen the low for the next couple of weeks. The very strong seasonality begins this Friday and combined with the oversold condition I expect an upward bias into expiration. We will likely see a lot of chopiness due to the rumblings out of Europe, which remains a big wild card.
If we get a rally into option expiration I plan on taking a more cautious stance. The past two Summers have seen very nasty corrections and we are coming off a big rally in the past half a year. The imbalances that have caused crisis after crisis in recent years remain and valuations seem fair to high all things considered.