A rather mild week for a quad witching option expiration where $SPY goes ex-dividend. For those that don’t believe in the effectiveness of technical analysis please take a look at the monthly chart of the SPX. The fact that we closed higher all five days of option expiration week presents some interesting returns for the next week. Bulls would like the consolidation on this week’s strength but there are many catalysts next week with the FOMC being the biggest so anything but consolidation is more likely.
The S&P 500 is sitting at widely known resistance underneath a downward sloping 50 SMA so it’s easy to see the bearish outlook. However, the calls for pullbacks this past week were incessant yet the market moved higher. Perhaps the move is in anticipation of the FOMC and that everyone knows Greece is baked in (or is it?). Perhaps not. It’s my belief that the weekly close above the monthly pivot puts the ball in the bull’s court next week. They lose 1140 and bears come out of hibernation. Enjoy your weekend and the links!
- What happens to your brain under the influence of music [io9]
- 7 Steps for Replacing Distractions with Goals [Registered Rep]
- Psychologists discover a gene’s link to optimism, self-esteem [UCLA]
- Laughter is the best medicine [Oxford University]
- Only my opinion counts: Myside bias [Psych Central]
- Can the Unconscious Outperform the Conscious Mind? [PsyBlog]
- There is a Difference Between What People Say and What They Think [Ivanhoff]
- Psychology’s magician [The New Atlantis]
- The blue screen of death in financial decision making [Morningstar]
- Why self-delusion produces winners [University of Edinburgh]
- What personality type makes the best trader? [Elliot Wave]