As of Tuesday, we had yet to see a minus 1000 tick on the NYSE in 2013. The longer the drought for the bears, the more hungry they are becoming. A feeding frenzy of high minus tick will ensue and prices will have an elevator shaft of all downhill. Once the supporter turns off his switch, gravity will pull this heavy market down. Expiration week ordinarily has a buy bias, but at some point a sharp decline usually occurs as well. Many computer generated trading systems reduce or eliminate their participation in the later stages of expiration week. Due to the propping of prices, any computer withdrawals from participation result in a sharp price decline. Common sense is one of the better motivators for acting upon a situation. When a market is overbought, it will eventually have a correction. However, it is noteworthy to experience portfolio adjusting throughout expiration week. And, most of the time the computer programs are reduced or shut completely off into expiration Friday. If trading on Expiration Fridays, be extra cautious for it is very unpredictable. The probabilities and predictabilities fall below my bench mark of acceptable. Cross currents of portfolio adjusting skew normal movements. This provides smaller opportunities and random trading is more prevalent than the oddities. Subsequent to a 3 day weekend, a new environment should emerge. Any negative news item could trigger a domino effect of selling.
The foundation of this market has eroded over the last 10 trading days. Despite artificial price propping, corrections are inevitable and a natural part of market cycles. A correction cannot be stopped. It can only be postponed. The market will not be open for the Dr. Martin Luther King Jr. holiday, which happens to be President Obama's Inauguration day. Holidays take certain groups of traders out of the equation. And certain computer programs are not present as they ordinarily are.