Looks like the NYMO cycle will be confirming up today.
The last high was set Nov. 24, and the low looks to be Dec. 22.
It spent the back half of December under the zero line.
Price held firm throughout and in variance to the NYMO decline stranding our benchmark price of SPX 3642.31 (pea green line).
This now becomes unfinished business, which will be completed in a future down cycle.
Price can run quite a ways (or not) before gains are given back.
If you look, you can see three pea green lines showing where prior stranded benchmarks got cured in the March 2020 decline.
It was unusual to have so many so underwater benchmarks at that time, but QE driven markets can do that sort of thing until gravity kicks in.
Today opened a down gap.
We have 17 open down gaps from last year, a record.
As a matter of practice, we don't carry gaps forward into a new year considering books to be squared and a new ball game.
That said, many gaps do close. So, all those red circles remain relevant in my view.
Not much more to say at this point.
I am flat from a restful holiday.
I had a modest R2K short that stopped out for a loss on the overnight break of Tuesday's inside day high.
I have long setups in the batting circle that may step up after today.
I may go light with them as I am feeling vulnerable to a trap but I will honor the setup and take what comes.