The Present Gap in the S&P 500 Futures
+29 points Mid-Day Wednesday
- Discernment of Trend Status
- The Gap aspect as a potential trap for bulls and bears
- When new lows are reached (in this micro trend) and we probe new depths
In the comment boxes you will see relative tops 1, 2 and 3: and we feel that the bulls would have bought into the idea of a next phase higher in each of those levels between 2735 and 2740.
From top to bottom of this 60 point range you'll see the highs are declining just gradually, and the bottom fell out at 2700 this week when it fell through quickly yesterday, confirming the pattern yet setting up a bear trap, which is likely just demand expressing itself.
The return back to origin
In the middle, it would look like railroad tracks, I have found these to be in alignment with several key turning points. At 2726 and 2724.50, those levels acted as initially a bull trap and then a bear trap (the base of that gap which filled). I would say the point of imbalance is because of where the sell-off originated and for that reason we have such a spike in equities today, these things tend to return back to home.
If the pattern still persists we should see a break to new depths below 2680 and the market moving at a swifter pace while expanding the average true range
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