Here's an important development for short-term traders to take note of. The up-gaps that had been left at the open on Monday, May 10th, have been filled as of this morning (see accompanying chart of SPY, DIA, and QQQQ).
SPY, DIA, QQQQ (hourly chart) gaps filled
The fact that the gap has been filled is not necessarily a sign that a bullish reversal is to be expected at this point but it may be enough to instigate a bullish correction within an ongoing downtrend; such a correction could be of a sufficiently large magnitude to kill stops on short positions and, as such, it might be a good juncture to consider trimming short stock positions and bearish options positions.
Sincerely,
Asher Pinto
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« Bears Beware: Gaps Filled »
Here's an important development for short-term traders to take note of. The up-gaps that had been left at the open on Monday, May 10th, have been filled as of this morning (see accompanying chart of SPY, DIA, and QQQQ).
The fact that the gap has been filled is not necessarily a sign that a bullish reversal is to be expected at this point but it may be enough to instigate a bullish correction within an ongoing downtrend; such a correction could be of a sufficiently large magnitude to kill stops on short positions and, as such, it might be a good juncture to consider trimming short stock positions and bearish options positions.
Sincerely,
Asher Pinto
Sign up today to gain immediate access to our well thought out Stock Picks, Options Picks, Model Portfolio and Market Commentary.