With the futures strong all night, the market gapped up first thing this morning. Ever since the first few minutes after the opening bell rang, stocks have consolidated that gap higher exceptionally well. Unlike previous times over the past few weeks when we saw glimpses of strength, there was not a stampede to lock in profits and reinitiate shorts. So, at least for the short-term, the market has seen a change in character in that regard. Names with heavy short positions are seeing vicious squeezes today, including $ENTR $GMCR $LDK $MGM and plenty more.
Seeing as the market has digested its morning gains well, a strong close is a distinct possibility. As you can see on the 30-minute chart of the $SPY zoomed out, the bulls have made good progress today, but still need to clear a key area of prior highs in order for the rally to have staying power.
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The market is waiting to here whispers from the great bearded one.
hear even…
Its important to note, the gap has held(at least so far). For awhile now we’ve seen some buying in the morning and then selling at the close. The close today will be interesting.
Right–see post.
Looks like a common gap to me. Those long to be filled, do they not?
by definition common gaps do get filled, yes
No doubt the Clam could BerTank the markets, and the late selloff typical of the last 2 wks could come as well. But if S&P can close over 1275 or better yet 1280, and in so doing fade both Bernanke and the late selloff, my paradigm will shift quite a bit to the bullish direction at least on a day to day basis. Yesterday’s volume and price failures on most majors was pretty telling and it got me in SPY calls overnight for a good 40% gainer.
I didn’t mean to sound flippant, Chess. I was just thinking that since we haven’t touched the 200 day on the SPX that even a swing long on this gap-bounce has a lot of risk. What say you?
it’s a fair point the question is when it will get filled-big diff for me whether that is tomorrow or next week-based on todays action I would not say tomorrow.