The Dow Jones Industrial was anble to hold on to Thursday's mild gains on Friday. While option expiration is usually termed a "unidirectional&q... event due to many variables occuring at once, selling pressure will follow on Monday. This coming Monday will be the litmus test that will either bring side-line managers into the market or compel those who have participated to finally take big profits off the table.
Personally, I"m betting on a downside, especially in the wake of the fact that the much hoped for "housing bailout" failed to tame the foreclosure rate; as we all know, in April, our country registered the worst foreclosure rate in the past 4 years. That said, panic and fear will once again hover on Wall Street to shed at lesst 50% of the 2300 Dow Jones gains.
The next support to watch is the 50 DMA of 7800. If that level is breached, the 200DMA of 7100 will be a stretch. Thereafter, look forward to new lows again.