Good morning folks. Another day and another gap up the SPY is trading up over 1% premarket so far. Gold, Silver, Oil all have early morning strength. This gap up means nothing as we have been gapping up everdyay for the past week only to fade late morning. For the pattern to change we will need some follow through where not only we gap up but any dip gets bought and that morning high is taken out. All in all the price action has been piss poor the past week and yesterday in particular. We pretty much based near support the whole day tapping spx 1210 till we finally broke lower. We essentially have a big rounded top on the s&p with a series of lower highs since 12/5. We need to break that pattern and start taking out some levels if this market is going to correct.
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To do that I suspect we will need sometype of news. We have seen this actiuon every single month since august right when the market starts to make some consistent lows a rumor or piece of news starts the mother of all short squeezes. YOu have to be very careful with your overnights in this type of scenario. It could be anyday you wake up to a 3% gap up.
We didnt have much action overseaS
- European markets are mixed in afternoon trading. Britain’s FTSE 100 lost 0.25%, Germany’s DAX added 0.8% and France’s CAC 40 gained 0.9% on the session.
- Asian stocks ended the session mixed as well. China’s Shanghai lost 0.12%, Japan’s Nikkei 225 added 0.49% and Hong Kong’s Hang Seng Index gained 0.06%.