The gap up today brought price higher and for much of the day price was in strong territory. But like the NDX, when the big boys came out to play late and the day, price lost momentum. This pattern has not been favorable for the most part.
The gap up and lack of follow through on the close has a pretty good track record recently of signaling further short-term (day to 2) downside. While NDX spent most of the day in strong price territory, when the big boys came out to play late in the day price couldn't hold. 4 recent pump and fades have resulted in lower immediate pricing.
Despite the gap up today, the short term downtrend is still in-play. Key support/resistance are converging which suggests a strong move either way. The descending triangle pattern seen here has a heavily has bearish probability. My 2 main trend indicators are EMA (13/48) and PPO (12,26,40), which are both bearish on the daily time frame.
