3 replies to this topic

[S.I.M.O.N.]

gap up in the AM bottom tick close setting up imo, back to back 500pts, now thats the real deal.

[greenie]

gap up in the AM
bottom tick close setting up imo, back to back 500pts, now thats the real deal.

Would you please explain further? Why is gap up bearish? Also, are you saying that if we gap up, we can have another 500 pt down day with high probability?

BTW, I read your blog everyday. Thanks for keeping it up with valuable information.

[arbman]

The lows must be retested and it gives the participants for another lower risk entry for shorts and a clear exit to the longs who should know that the lows will be tested or buy cheaper... The open interest is showing only 300k decline in the net calls, down to 9.7M net calls. The call and put open interest both rose about 2M contracts yesterday. I don't think there is much fear out there. It's been steadily declining since last Oct with the big 30% haircut in Jan and another 10% in Feb expirations. I don't think I will touch to the stocks until it starts to increase in the long side. My guess is the stocks will either shoot straight down tomorrow another 40-50 points or stay around here for a week and test 1420-1430 region and retest the 1360-1380 region by late March. - kisa PS. I wonder what the financial media will say if the market gets another 40-50 SPX decline tomorrow.

[spielchekr]

Or maybe, some price co-oping amongst cash-starved fund managers to sell ahead of the 401k?IRA sell orders?