Options Expiration Week Ahead

The Dow ended the week up a total of 247 points or 2.46% last week as investors take the Dow out of the 10,000 points blackhole.

But is it really safe now? On a long term basis, yes. We have announced a primary bull trend months ago and if you have followed on that, you would have made significant gains by now. How about the short term? Well, last week's rally left the Dow once again in short term overbought condition and short term bearish momentum is once again rising. I would expect a revisit to the 10,000 points again this week so that the Dow can get out of overbought condition again and also establish the 10,000 points as a new short term support level. Once that is done, the bull trend can continue.

This is options expiration week and leading indicators week (see Stock Market Calendar), so do expect a fair bit of volatility.

For now, the Dow remains in a all out bull trend.