Volume was relatively low today. The market rallied due to short covering and index arb buy programs in the morning, reaching resistance at 1924 in the September Emini S&P 500 (ESU14.CME). After that, we saw selling that is likely to continue overnight, with some bounces at support. We expect to see a low tomorrow or by early Friday. This comes from our friend the PitBull, one of the original market wizards. The market tends to make a low the Thursday/Friday before options expiration week. That’s next week. Other than the morning rally, all movement had little volume behind it and the MOC was weak with only 110 million to buy. It was the first buy imbalance in 7 days and hardly bullish. HIGH: 1923.30 Mid-Day LOW: 1905.30 Early LAST: 1915.00 UP 3 Handles TOTAL VOLUME: 1.7mil minis; 2.3k bigs MOC: BUY $110mil FOR TOMORROW: Jobless Claims EIA Natural Gas Report Consumer Credit FED Balance Sheet Money Supply Dead day today with narrow ranges. How lows are made the Thursday/Friday the week before expiration. Markets still weak. First buy imbalance in 7 days.