Watch the Gap, 25 May 2023
🖼 Daily Technical Picture 📈
➤ Equities gapped lower but found short-term support at the 410 level on the SPY. The VIX accelerated higher. In after-hours trading the price has bounced higher. It would be interesting to see if this is sustained until market open. It could lead to the filling of the gap and in doing so creating another gap. Are you following my gapping explanation? If not, look at the chart. You'll note there are a couple of other unfilled gaps lower as marked by the blue arrows. These tend to get filled over time.
➤ Without prior knowledge of the after hours bounce, from the naked eye it does look price wants to bounce higher given the combination of 1) hitting a support level 2) deceleration in the drop (reducing bar/candle size)
➤ I do favour the notion that the immediate gap should be filled. That will hopefully get me out of my long trade for a profit. If that is fulfilled, I'll be looking for a potential Short entry shortly after if things play out as expected.
➤ I remain positioned fairly neutral for now.
➤ Conclusion: 🐆 The favoured view is for price to straddle lower.
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
➤ Equities gapped lower but found short-term support at the 410 level on the SPY. The VIX accelerated higher. In after-hours trading the price has bounced higher. It would be interesting to see if this is sustained until market open. It could lead to the filling of the gap and in doing so creating another gap. Are you following my gapping explanation? If not, look at the chart. You'll note there are a couple of other unfilled gaps lower as marked by the blue arrows. These tend to get filled over time.
➤ Without prior knowledge of the after hours bounce, from the naked eye it does look price wants to bounce higher given the combination of 1) hitting a support level 2) deceleration in the drop (reducing bar/candle size)
➤ I do favour the notion that the immediate gap should be filled. That will hopefully get me out of my long trade for a profit. If that is fulfilled, I'll be looking for a potential Short entry shortly after if things play out as expected.
➤ I remain positioned fairly neutral for now.
➤ Conclusion: 🐆 The favoured view is for price to straddle lower.
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
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Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
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