Another Friday Sell-off

The SPH and NDH continue to be offered lower in today’s session. However, the main talk on the floor centers more on the upcoming Super Bowl and existing square pools than the direction of the trade.

I think the market will continue to trade in a relatively narrow range until the FOMC meeting adjourns on Wednesday of next week. One of the issues facing the market is something I have outlined over the past few days, and that is, who is left to buy? The trading rally seems over for now — at least until post-FOMC — and with such a strong volatility contraction, it seems to me that the sidelines are a very friendly place.