NEW YORK (TheStreet) -- With the help of military action in Ukraine and Russia plus the triple witching options expiration, the stock indexes were whipsawed on Friday on huge volume.
In what appeared to be a huge move to the upside early on, the stock indexes did a complete reversal to the downside by mid-morning on the Ukraine-Russia military action.
The DJIA closed at 16662.91, down 50.67 points while the S&P 500 closed down fractionally at 1955.06. The Nasdaq was up by 11.92 at 4464.92 and the Russell 2000 closed lower by 1.69 at 1141.65. All the indexes closed well off their lows on Friday.
The S&P 500 Trust Series ETF (SPY) volume was huge on Friday, coming in at over 139 million shares. Dare I say that the down day in the market was on accelerating volume.
I expect to see the market open to the upside on Monday. The reason is strictly due to my algorithm process. The DJIA closed with an 81.05 algo number. A green open on Monday will give the index an overbought number but still plenty of room for more upside. The DJIA could stay green until Wednesday. The same holds true for the Nasdaq and S&P 500. The Nasdaq will be overbought on Monday green but not extreme.
The hedge fund machines know this and will push the indexes deep into overbought territory before we sell the markets sell off again.
The only index that was overbought going into Friday's trading was the Russell 2000. The RUT is still overbought and will again approach extreme overbought on Monday green. As I mentioned in Thursday's article, I was long the Direxion Small Cap Bear 3x (TZA) . The events on Friday saw a huge reversal to the upside on the TZA and a huge profit for subscribers at www.strategicstocktrade.com.