This is Quadruple Witching Week, with options expiration on Friday. Our analysis indicates a potential market correction is coming at the end of this week or early next week. Both the S&P 500 and Nasdaq 100 currently exhibit an unusually high level of net in-the-money call premium, which could trigger a rapid 3-5% market downturn.
Following this correction, the Fourth of July holiday and subsequent Wall Street hiatus may lead to decreased trading volume. Historically, lower volume often coincides with market floating higher due to reduced selling pressure.
We will leverage our proprietary algorithms to pinpoint the precise onset of this correction. For investors not inclined towards short selling, this period calls for prudence when considering new equity purchases.
