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What is most impressive about today’s session thus far is not just that the SPY quickly closed the fairly large gap down this morning, but that the buyers were able to push up just above Friday’s highs. In other words, this was not your run of the mill gap-fill/bear flag. Immediately after making a marginal new high, we consolidated those gains and are holding just above that reference point of Friday’s highs, as you can see on the 5-minute chart above.
Shockingly, we may very well be in store for a trend day higher even after a 100-point gap down on the Dow to start the session. Underneath the surface, I am seeing plenty of breakout plays working, and other potential breakdowns from this morning firming up with authority. Rather than playing the contrarian game based perceived sentiment, I am focusing on the reality of my watchlists and screens. Opening weak and getting stronger as the day goes on is the hallmark of a bull market, and so far that script is holding true.
booya indeed