Expiration Friday, Indices Pause at 200 DMA

Today is options expiration Friday for May contracts. After strong move up in the broad indices on Thursday, the indices are pausing at their respective 200 DMA with modest pullbacks in the first hour of trading. Take a look at the charts of the DJIA, SPX, COMPQ, NDX, RUT and SOX to see the pause at the 200 DMA in each of these indices. This is typical to find selling resistance at the 200 DMA after after a market has strong down trend like the down trend from October to January. Looking at the chart in detail, this pause appears more probable to be a temporary pause than a reversal point. Dave's Insight: Rember to trade the market, not your thoughts. Early Friday Action Moving Up: MTL, CNX, X, DRYS, FSLR, POT, MEE, CELG, IPI, CLF, GRMN, CF Moving Down: MA, STRA, DECK, PCLN, GS, AAPL, LEH, SOHU, EBAY Dave's Insight: When an stock is in an uptrend and is listed as Moving Down, watch for a potential support bounce entry.