Market likely to remain rangebound next week

I would expect that the Monday following expiration would reverse (at least initially) the intraday trend which is prevalent on expiration Friday. Since the trend today has been down for the most part, I expect Monday to begin on a positive note.

 

However with volatility low, sentiment complacent, and market internals having been struggling for quite a while, I also expect rallies not to have any significant momentum either in price or time. On the other hand, the market has several layers of support should downside reassert itself. Given that positive seasonality would exert some upward bias, my take is that range-bound action should continue to dominate.

 

Support on the SPX is 1265 followed by 1250, and that of the NDX is 1688-90 folowed by 1670-72. Dips to these support levels should present short term buying opportunities.