Tuesday, June 29, 2010

Remember the GAPs

As you remember GAP based trend days are very easy to idenfity on a strong GAP down/up. In this case, high of the day should be made within the first 5-10 minutes off the open by about 3-5 pts above open price. After reaching this price point it "should" drop to make new lows.

There is a potential for the GAP fill to extend in the first 30 minutes but that will decrease chances for a trend/stepping day. So watch the first 15 minutes very carefully, today has a potential to drop another 15 points (making it a total of -30 SPX pts) towards 11:35-11:45 (should be a low).

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