Long at the close or buy a gap down?

A moderate decline into the close or a gap down tomorrow with this anemic volume could be a better bounce candidate into Wed, me thinks. The market is getting ST oversold with slightly bullish divergences and unable to generate a range expansion, yet. The breadth is weak, so only expecting a bounce for now, but it could be something more from the IHS or a cup and handle formation on RUT. The volume has died within the cup.

RUT has a very strong 16-18 day cyclical low forming, it kind of works with the 3wk low of the 3, 6, 12, 24, 48 wk harmonics. The sentiment is not constructive, but probably the market is headed for a top in the weeks ahead or already topped. Fed has also signaled 'no drain' for the week ahead of the holiday, the crude is headed to the 200 dma, although I expect the inflationary issues to continue to lead at this point.

The caveat here is this could be the beginning of a bigger decline, there is also an 8 day cylicality showing up on SPX for a low on Friday. So, this could be only a bounce within the range...



Good luck.

a buy at 1260.50 if seen.. with a tight stop during the 3pm hour might be an idea.

if oex can close back above 583.50 on close....bullish implications.....short term at least

fully long Profunds UltraChina at the close.....rotation gamble play

For the record, I could not go long and I absolutely didn't like the close. The market rallied with poor breadth into the close, sets up another gap down imho... I will see how it gaps down...