Who Falls Down First?

Options Expired - The Party Goes On!  What's Next?

(Click on Chart to Enlarge)

SPY 20 Day, 2 Hour - 8.20.10

The Market has moved in a relatively confined range for several months.  There has been considerable volatility between support and resistance.  You can see the frequent gaps up and down.  During the Consolidation phase (Battleground) seen in the above chart, notice how the MACD drifted lower during this phase.  This was followed by a gap down and market decline.  At this juncture the market could go either way (as always).  The Green Spot in the MACD shows an up trend as opposed to the Consolidation earlier.  Perhaps there is a message here.