Why the Gap?
First off if you don't know what happened, it has to do with the pattern that formed over the past month and the following pull down on Friday that occurred as a result of the pattern. This pull-down was headed to a destination, give or take the 260 area, but they needed to retest the neck-line to see if this movement was in fact valid..this happened on Friday, but the pattern failed therefore the pull-down movement was the gap-up we saw. This type of movement calculable and I suggest you do some research if that interests you.
Look for the time being you should ask yourself: where are sellers likely to come and when will the bulls lose steam? My thoughts are that a we will see sellers around the 299/298 mark. Why? Because this is where the 200 period moving average is for on the daily... need I say more? If they blast through this value watch the big fat round number 300 and past that will only be short squeeze to 302ish, this is where the head-and-shoulders reversal calculation will come in handy. These values are the big 3 to watch out for and a good entry point for a sell-off to at least the neckline, yes I know it should be invalidated but it is also a trend-line and I like the values(290 in particular).
What Am I?
I neither a bull nor a bear... just a trader. Check out my other predictions for quality and accuracy... except the fugly DKNG prediction. I learned a lesson that day, but on SPY and other major indices I pride myself as being in the know.
Like and Follow!! Also please leave comments and questions. I will happily answer and digest your guys input!
A test of some of the important values below are normal for the market and I do know there is more space for lower movement than above. The issue is getting the timing right.
I am still bullish until we reach those values or the puzzle pieces that I look for analysis of the market make me raise an eyebrow.