Friday, January 22, 2010

Small Gap on S&P 500 at 1104 Yearns to Be Filled

Ah yes...

S&P 500 high on Dec 18th, 1103.74
S&P 500 low on Dec 21st 1105.31

We mentioned in this week's summary that we should not forget these gaps - looks like the market yearns to fill the first green circle (gap) today.

[click to enlarge any chart]

This was the chart coming into the week....

And the chart now... what a striking difference in 4 days.

Best case for bulls is that first gap fills and then a flurry of SPY buy orders show up (out of the blue of course - as has been the case for 10 months) to close the S&P 500 over 1115.  Outside of that scenario, caution remains in order.

EDIT - as I typed that piece the market slunk to 1104.94 and now bouncing quite sharply.  The computers are working on overdrive today.

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012