Programs Are Driving the Action

The Gap Reversal Thursday has almost been reversed and the market is back to the 50-day MA.

PRE-OPEN MARKET COMMENTS TUESDAY - The drop last week felt particularly nasty, but much of it was artificial. The gap reversal gained momentum and once it was established, programs kicked in. Options expiration was Friday and trading firms were able to trigger sell stops. Options that were trading for pennies traded for dollars and premium sellers were forced to reel them back in. In the last two days, the market losses have been largely recovered.

Daily Bulletin Continues...