On Monday, the institutions did not participate. The beginning of our trading week provided price appreciation. The odds of it continuing into Friday were low. The bias was generally bullish, but the fact that we moved so far in Monday and Tuesday’s action bodes well for the bears as they look for reprieve. Expirations can distort prices, so we may be in an overrun environment pushing higher than average.
Thursday night, the House did not vote on their fiscal plan proposal, sending a short wave into the S&P. It briefly lowered prices below 1400. However, prices regrouped and bounced significantly. Major price moves initiated by a new item is always a point of major reference. If we do not close below 1395 soon, there is potential for a capitulation bottom.