Yesterday was a fail on posting. Trying again today.
I don't allocate much time to this stuff. So if software glitches, I need to move on and get back to business.
Another day, another gap.
At the moment, we are trading between yesterday's and today's.
One and perhaps both can be resolved by weekend.
The NYMO cycle remains down.
However, we have a positive divergence with yesterday's price lows having a higher NYMO low than the prior low.
We also hit the NYMO turn zone again intraday yesterday.
This all coincided with a tag of the 200 MA.
These are conditions for a rally ahead.
Price hit another down gap target yesterday.
It also completed an inverse cup and handle pattern bringing the next two down targets (SPX 2743.07, 2709.80) and the lower keltner band onto the radar.
Generally, if prices loses a consolidation around the middle keltner, it proceeds to an outer keltner. We shall see.
So, price action is down but NYMO is suggesting a rally setting up under the surface.
A lot of folks have gotten short/bought puts and a lot of funds are about due to re-balance portfolios (sell bonds buy stocks).
Perhaps a squeeze may be in the cards between now and June OPEX (which is a triple witch).
I don't know what will happen but I have been of a mind that a down trend of recent ATHs would be noisy/choppy and not quiet/smooth.
My short runners are still on for SPX and R2K.
I tried some long hedge on last Friday, which flopped and stopped for a charge.
I have got some on again this morning but will BE stop.
This morning's gap may want to close.
The chart is as of yesterday's close. I shrunk it a bit in hopes of avoiding a glitch.