I don't have much to say about Friday. After good sized gaps up the Naz and S&P ended basically flat for the day. I'm sure that the quadruple expiration played a big part in Friday's action. The thing that still jumps out to me is the reluctance of the Russell 2000 and Nasdaq to join the daily new high party being had by the Dow and S&P 500.
After (barely) popping out of that symmetrical triangle on Thursday, the Nasdaq appears to be stuck in another triangle now.
More of the same for the S&P...
The Dow Transportation Index is looking tired.
The Russell continues to be the laggard of the major indices...
Research in Motion (RIMM) is an example of options strike pinning at its finest. The bear in me would love to short RIMM under Friday's low, with a stop near Friday's high, but there's no way I'd hold it through earnings on Thursday. So I'll just watch for now...
No changes.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Lat |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Michael,
with majority of institutional traders gone for Christmas vacation it is very unlikely for any for the major indexes to set new highs till the New Year. Thursday and Friday's action was easily predictable by ( as you said options expiration date) and 401K/pension finds inflows, since Friday was 15th, but - who wants to stay on Friday, tuts used cash reserves on Thursday and Friday early morning. Nasdaq and Russell are stuck due to unreasonable expectation of Feds cutting rates did not materialize. I think it'll all change right after New Year, will go up till mid February when Feds will give some clue to as when and what to expect ( rates wize) and then we are going to have very uneventful and boring spring and summer. JMHO
DavidDT