The retest that I spoke of yesterday occurred today in the S&P. The S&P bounced off of 1430 (August low) sharply and then began to vacillate widely. This could prove positive for the market as it moves into the end of what has been a crazy August option expiration cycle.
On a seasonal basis next week as a whole is overwhelmingly positive. I say as a whole because Monday is historically weak with only 38.1% of all days since 1985 closing in positive territory. However, according to the Stock Trader’s Almanac “the Monday before August expiration the Dow has been up 9 out of the last 11 years”.
Tuesday, Wednesday and Thursday as I said are overwhelmingly positive on a seasonal basis so if the historical precedent holds....
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