The last few sessions have seen a phenomenal rally. But the S&P 500 Index, as well as the XLK (technology), XLC (communications), XLY (consumer cyclical), and XLB (basic materials) sectors, have already tagged their weekly expected move highs – diminishing the probability for further gains this week. Expect some backing and filling and perhaps a retest of recent breakouts. Again, we are contemplating the probabilities.

There are times when the market will blow materially through the weekly options expiration highs. On these rare occasions, the gains can be something to behold – as market makers are forced to buy futures to neutralize their losses, leading to further gains. There is tolerance for some excess over the levels, especially early in the week, so the price must materially exceed the expiration levels to trigger the market makers. But that is the least probable outcome, so carry forward the levels we just achieved and these implications.

Tagging the expected move highs is the reason the Founders Group trimmed positions this morning. We do not have an Algo Sell signal as yet.