Option expirations are often tricky to trade — I understand that many good traders even take the day off, which may exacerbate already reduced summer trade size and frequency. Gut check, I think we may have continuous down side into Monday next week before a bounce next week.
In that vein, I wouldn’t mind a gap up or some weak upside retrace tomorrow with which to book a 2nd dance with my favorite grizzly. If we do take out the today’s lows and close weak for the week, I expect that the bulls may be in serious trouble. Even if we bounce from oversold, and I am admittedly thinking out a bit here, at that point I’ll be looking for a larger decline on the horizon.
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