As fascinating as I find gaps, I don’t particularly understand their basis. Yet as we look at overnight action, we can see almost penny-perfect gap fills in the ES……..
…….the NQ………..
…….and the RTY small caps………
Of course, as I’m typing this (moments before the opening bell), we are “well off the lows” CNBC-style. Still, I’m so relieved that the cup with handle pattern on the small caps was rendered neutral. That pattern seriously scared the devil out of me.
Just about the only green on the screen at the moment is gold, but I’ve got to say, looking at the intraday, this does not look like the kind of base from which rallies are formed.
I am entering this week more aggressively positioned than I have been in quite a few weeks, at 179%. As always, I will scour my charts, one by one, tighten up stops, and deploy new opportunities from my “Bear Pen” watch list as seems appropriate. Good luck out there, all!
