Gap close next?

Gap close at 1075 is now a very high probability from here, RUT is leading down. If the index cannot bounce very strongly from 1075 gap and remains below only 2-3 days, the odds for new lows tremendously increases. SPX 1075 is technically the new 1100 trap door to hell, it can eventually suck the prices much lower... Google better delivers...

It was only waiting for people to load up the puts, it happened during the last hour decline, people did switch and the market did reverse abruptly... Where from here? I tend to think 1107... I would be more bullish if RUT could hold up better... (Edit: I honestly do not have a clear reading either, this is an option expiration week and this pull and push will likely continue, it is better to take a position once it resolves better)

Edited by arbman, 15 July 2010 - 02:53 PM.

So far, google bombs...

The market better remains over 1075 next week, so they need to push over 1100 tomorrow to build on the closing momentum. But, it looks like an higher open and a fizzle to me. Typical expiration Friday, pays the index, but not the equity options. Tomorrow is not a resolution day above the down trend line, imho.

NYMO has turned, RUT lagged the rally, the Treasury bonds refused to sell much even after the last hour rally. The news items are good for an equity mark up, but Google earnings is about the trend. There is a cycle low due for Jul 20-21, the market is still as o/b as it can be...

The market is at an important cross road, so I tend to think it is still better to comment after it breaks above the down trend line around 1100 or drops below 1075 and invalidates the upside targets.

I will be out until this happens, best of luck to all of you.