This week is a perfect example of why many traders stay away altogether from trading options expiration. Considering this market was already difficult to appraise - it's sound strategy. I decided that after the XLF broke through the bottom hourly rail this afternoon that I would widen the time frame out to a weekly chart for better perspective. Here's a quick update of the weekly XLF analog from a few weeks back (see Here).
Long and short of things is the market has followed script lower, albeit with less velocity and conviction.
Could the market be getting ready to close the performance differential- as illustrated in the video segment Monday (see Here)?
To be quite honest, I have very little confidence in the short term machinations of this market because of OPEX and because of the fluid newsreel out of Europe. It does appear though from many perspectives that the market has in fact topped.