Open Gap Still Not Filled
I stated that I thought that by Monday at the latest the market would have a sell off. Today the Dow jones industrial average was down over 115 points. I am expecting further weakness on Monday and by sometime Tuesday I am expecting the market to have a short term oversold condition and a small rally for next week. This week the Dow was down over 1%. Again I feel the market is running out of time and just spinning its wheels. If I was a long term investor I would be looking to sell between 18100 and 18500 as I see further weakness in the months ahead. The gap at 210.02 on SPY was never filled. I think that gap should be filled on Monday. Even if we get some type of a market rally I am still expecting the gaps below the market to be filled during the summer months. There are no clear patterns on gold, except for intraday patterns. The long term is still not clear and I am waiting for clearer patterns. Oil is doing everything it can to hold above the 55.69 level. Today oil was up over 2.50. Again oil is stuck in a range between 57 and 62. Oil stocks were mixed today despite oil being up over 2.50. I am bearish on oil and believe that this 55.69 level will be taken out on a closing basis on the daily charts. My course Pattern Recognition 101 is almost complete and I will keep you posted if anyone has any questions please call 203-617-4026 .