The Magic of “Levitation” (by SB)

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definition of levitation is from Wikipedia:

Latin levitas "lightness")[1] is the
process by which an object is suspended by a
against gravity, in a stable position
without solid physical contact. A number of different techniques have been
developed to levitate matter, including the
aerodynamic, magnetic, acoustic, electromagnetic, electrostatic, gas
, and optical levitation

When markets gap up on the open, they remind me of
something which is levitating…they seem to be suspended/elevated by
combined forces which have exerted energy through momentum. As you can see on
the Daily charts below of the four Major Indices, after today's
(Monday's) opening gap up, they are all still under the influence of negative
momentum, albeit two days' worth of decelerating negative momentum.

As shown on the
2-day comparison chart below, the Nasdaq 100 leads in terms of
percentage-gained on the two-day bounce, followed by the Russell 2000, the
S&P 500, and then the Dow 30 Index. This suggests that the current
market appetite favours the riskier sectors over their blue-chip counterparts.
Whether buying continues to push and hold momentum above the zero level remains
to be seen. It would appear that the high-beta stocks within the NDX and RUT are
the ones to watch over the near-term. Buying momentum within all four Major
Indices can continue to be monitored by viewing the Momentum indicator, as well
as the percentage-gained on a daily basis. Any weakening of these may be a
signal that this recent bounce may have run its course, particularly as the
Indices approach the underside of their major trendline breaks (which I've
written about in recent posts).

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