SPY options expiration chart - updated

SPY options expiration is highlighted by red circles around the closing prices each 3rd Friday of the month. These levels end up being support and resistance and I look for the market to respond at these levels. You can see that the last sell-off fell back to the two old expiration levels from last year. Granted, that is a long time ago but at least it looks good on a chart. In the past, I would give odds that the market would fall after an options expiration, then put open interest would expand and indicate a floor of support would build, then it would time for a rally. When VIX is low it indicates a level of comfort and complacency that is unnerving me, but what is supporting equity prices is the drop in the bond market is telling me that people are finally making the proper asset allocation decisions to exit their over-bloated bond positions and move funds over to their underweighted equity holdings.

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