Gaps up in daily price bars or candles don't always have the kind of follow-through necessary (ie more buyers) to continue the upward momentum the overnight traders generated. Positive momentum following a gap is often dependent on how far away the next line of resistance is or how large the window might be.
Left click on chart(s) to expand
This morning's gap managed to drive the Dow Jones Industrials well through a trendline, but the selling pressure was too much to overcome, and by day's end, the Dow finished the day parked right on the trendline, which has served as a price magnet for the past several days.
It takes millions of shares (and hundreds of millions of dollars) to push a trading vehicle like the SPY up ten or twenty cents. While this may seem inundating (monetarily), it is not such a difficult task when there are plenty of short-sellers to squeeze on the way up.
 |
| Bears are wondering when their train will arrive |
It would seem, however, bears have lost much of their, "short everything," bravado and have finally chosen to wait at the station for the train to reach them, rather than suffering through their previously impatient and futile attempts to board a steaming locomotive on the way there.
The world will eventually come to an end, my dear bear friends.
It leaves me to wonder why so many of you have been in such a rush to get there.
Always perform your own due diligence. These are only my opinions.
