Holy smokes! Momentum players are back at the table as the market progresses to the old, all-time highs in only four sessions. As I pointed out yesterday, how the market handled the gap fill would tip its hand. We got a partial fill only, keeping the short-term picture bullish.
We have another solid gap higher this morning, and gap rules apply. Keep #2 and #4 at the top of your list. Futures have backed off the ONH, so profit-taking on overnight gains may be nearly complete. So, I am not going to try to play the open.
As with all gaps, let the market signal its bullish or bearish bias based on how it handles the fade. The overnight high at 4504.50 is your upside gateway to higher prices. The overnight halfback at 4488 is your bull/bear reference line today.
From 4488, you have support at yesterday’s high (4479.75), the overnight low (4471.75), and then the top of the single prints (4467.75).
We are overdue for a bit of downside pressure from the 10-day wave.
A.F. Thornton