The NASDAQ
gapped down on the open on some weak economic data. We spent most of the rest of the day gap filling. The first wave almost filled the gap from yesterday's low and the afternoon wave filled yesterday's closing gap. Once the gap was filled, we came into some weakness into the close. I'm watching the 50 MA on both the daily and 15 minute
timeframes. On the shorter
timeframe, I need to see price catch and hold the 50 MA in order to assume a bullish stance. If this doesn't happen, then I look to the daily 50 MA as potential for a technical bounce. Crude inventories tomorrow at 10:30 EST.
The NASDAQ gapped down on the open on some weak economic data. We spent most of the rest of the day gap filling. The first wave almost filled the gap from yesterday's low and the afternoon wave filled yesterday's closing gap. Once the gap was filled, we came into some weakness into the close. I'm watching the 50 MA on both the daily and 15 minute timeframes. On the shorter timeframe, I need to see price catch and hold the 50 MA in order to assume a bullish stance. If this doesn't happen, then I look to the daily 50 MA as potential for a technical bounce. Crude inventories tomorrow at 10:30 EST.
4 comments:
Thanks for the charts and commentary. I especially need help with the intraday price movements, so I'm glad you talked about it today. :)
You're welcome ExEngineer. Today's narrow range trade was a real snooze fest. Hopefully we'll get some more decisive movement tomorrow.
Hi Jamie,
What is the significance of a gap fill? In this case, the gap (down) was filled, meaning it has higher chance of continuing its move up the next day? Hope you can throw some light.
Learner
Hi Learner,
Theory has it that all gaps eventually get filled. In the case of the QQQQ, the opening gap was filled during the course of the day. However, there was a tiny gap in late afternoon of the previous day that remained unfilled. That tiny gap was filled yesterday after which the Qs reversed and continued the short-term trend which is down.
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