Options Expiration Spikes Volume Selling as Christmas Approaches
Friday's volume selling spiked on December expiration which will have clouded the intent of the sellers - be it confirmed distribution or mild selling. With Christmas week next week we can expect trading volume to fall and likely remain low until January.
Buyers were able to recover some of Friday's losses by the close of business for both the S&P and Nasdaq with only the Russell 2000 losing ground. However, no index lost significant ground or broke price support.
Friday's Nasdaq trading intraday range was narrow as technicals remain bullish
Selling in the S&P registered a new On-Balance-Volume 'sell' signal, to go along with the earlier MACD 'sell' signal, but there was no challenge on nearest price support of the 20-day MA. So no real damage done.You've now read my opinion, next read Douglas' blog.
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