Well, today’s market was a huge disappointment for those of us who think that it’s time for the markets to revert back to the mean. I would have liked to see the morning trade up with a sharp down move in the afternoon. However, all is not lost. Often times after a confirmed down day like we had yesterday, July 17, I found the next day can close up, but still have a downward bias. In looking at the charts, I believe there is still some potential upside in the next day or two, however, the bigger opportunity is to the downside.
The unrest on the Gaza Strip, as well as the downed plane in the Ukraine (Maylasia Air), I think that there’s a lot of potential for issues which could aggravate over the weekend. With this being expiration Friday we’re ready for a new week; a new expiration cycle; and hopefully some increased volatility as well as some down side moves that get everybody realizing quickly that it’s not just always “up” with the stock market.