Today the bears celebrate.

The bull’s problem is not that stocks fell. After all, stocks are falling all the time, sometimes presenting fine shopping opportunities.

The bull’s problem is that the stocks are falling at the options expiration day, exactly the moment when they are not expected to fall. Options do multiply the gains or losses, transferring quite a lot of green from the bulls to bears.

The bullish percent index shows that there is a quite a lot of room to panic, if the panic really happens. So far the technical damage to market internals is very small.

Uh, I’m a bear, thanks guys for that heavy feeling in my pocket šŸ™‚