Will "triple witching" put downside pressure ????

This week Indices will face potential threat from "triple witching".....

This week there is a "possibility" that China MAY raise interest rates to contain inflation which came in hotter....

Latest reading from investor intelligence points out that 40% of retail investors are bullish compared to 20% only two weeks ago....this has worked as a reliable "contrary" indicator ???

S&P 500 has moved up 6.6% from 1040 low..which MAY put downside pressure....

RSI in S&P 500 is 58.98..which is close to 60 in overbought zone.....

S&P 500 has been UP 7 out of last 8 trading days.......& closed @ its highest level of 1109.55....

Based on all of the above.....it will be PRUDENT to take a "wait & see" attitude......

YES..buying on weakness has paid off.....BUT buying on EUPHORIA has been a losing strategy...

Looking beyond Option Expiry week looks very good...there is a very good chance that we will take out 1131 easily.......

So a "defensive approach" this week is highly recommended........

A 3% pullback in OE week is not out of question....which MAY take S&P 500 to 1076 area....

Based on history of Option Expiry week Wed & Thursday are normally down days......

News from China was extremely positive on Saturday....Industrial production & Inflation is UP which MAY result in strong open on Monday...& MAY put S&P 500 & Nasdaq above 200 DMA..Dow is already above 200 DMA......

My strategy is to trade out "quickly" IF there is a gain......

I will be "under invested" this week........

Good luck in your OWN due diligence & understanding of market TAPE.....

BLOG does NOT give buy or sell.

Saleem