Momentum Gives Way to Uncertainty

Pressure from an overbought market that is up against resistance, higher oil prices, and options expiration week have all come together to put pressure on the indices. Additionally, breadth figures were poor yesterday meaning that market pressures are weighing fairly heavily across the board. Good trading conditions will return soon, but what we are faced with as we move closer to Friday's options expiration is a poor trading environment where money is much more easily lost than gained. It is time to be defensive, to keep your stops, and to take partial profits when they are on the table. Poor trading conditions are not expected to last past options expiration on Friday. In other words, this is most likely a temporary set back in a larger trend.