Nasty Close

The market was recouping its losses, with the SPX narrowing to a 1 point decline with 90 minutes of trading left. But then someone pulled the plug (I didn't catch who it was), and the markets cascaded to close at their lows.

There is always a nasty day during expiration week, and hopefully it was today. Volume ran higher then yesterday, so that qualifies as distribution, but the indexes are still above near-term support levels.

The market is currently in overbought territory also, so a little consolidation is healthy and could help to extend the rally. Also, lots of market leaders bucked the weakness and finished in positive territory. I am maintaining my net long exposure (+85%).