June Option Expiration Week Soft and Week-After Terrible

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As the market continues to falter today after finally snapping a 6-day losing streak yesterday, I want to caution you about the potential for continued weakness during options expiration week and the historically horrendous week after. The DJIA and S&P 500 are on the cusp of finishing 6 down weeks in a row. DJIA has not does this since the market bottom in October 2002. S&P has most recently closed down 6 weeks in-a-row in July 2008, July 2004, and accompanied the DJIA in October 2002. Yesterday demonstrated that streaks do come to an end (or at least pause briefly), so perhaps option expiration week is due for a modest gain. The week after, certainly is having declined in 19 of the past 21 years.  Read full post