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That jump prior to the close took the OEX up to the outer
statistical(proprietary) pivot zone. Generally in strong markets when the
pivot zones are stepped up for the next day the market also moves higher.
A pullback to the keyline occurs when the market begins to weaken,
sometimes it is a chance to enter a bull trend. The increased odds of a
pullback on the open occurs when yesterday's close is above today's
keyline, like for today. When the trend is decisively up the mkt will jump
to one of the upper resistance levels and not provide latecomers a chance
to enter in at opportune prices.
BobR
http://www.oextrader.com
At 12:57 AM 12/31/97 -0800, James Charles wrote:
>Hi Guys,
>
>Well, immediately after the close today, several of the oex call options
>I followed increased in price, even though the last two minutes before
>the close were not strong enough to justify that kind of pricing in the
>options. I think there are different ways to interpret that, but I
>suspect traders decided to buy today's close on speculation that we will
>have a parabolic move tomorrow. When traders do that, they exhaust
>themselves at the close and often they find tomorrow to be not that
>strong. Ofcourse, since other buyers can come in and more up action is
>always possible. However I think that closing longs into any rally
>attempt would be great if you can do it and justified by the kind of
>close we had today.
>
>Best wishes,
>
>James
>
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