Well, Option expiry, I doubt if that would happen tomorrow Friday, But another serious down day next Monday or Tuesday, perhaps. Today was supposed to be a flat day or slightly up, but there were weakness. This indicates market really wants to go south.
Possibilly the world is entering a new period of higher interest rates . The good news is, this should support the dollar. The bad news is it is bad for all other asset classes. The big test is the june fed meeting.
SPX 1275 and NDX 1600 got munched on that last hour takedown. It may be no more than that for options. However, if I were about to pull the trigger on a liquidation being long puts on expiry would be one of my favorite days. First you get the benefit of the puts and second you get the benefit of the support as all the sellers try to hold it up -- or the additional momentum as sellers hedge whatever exposure they have... Just a thought.
That's the rationale that's being bandied about. Given that, I'm not sure why the long bond was up a full point though.
I'll set it up at the end of the day if SPX is below 1250 and the Dow is below 11K and RUT below 700. Otherwise, I'd see a bounce as a more likely outcome. Today is just a modest down day so far. If it weren't the seventh in a row I doubt anyone would even notice.
"When Black Friday comes- I'll fly down to Muswell brook-- I'm gonna strike all the little red words from my little black book I'm gonna let the world pass by me-- The archbishop gonna sanctify me-- And if he don't come across, I'm gonna let it roll When Black Friday comes, I'l be on that hill-- You know I will"