Thursday, April 2, 2009

Runaway Gap

Thursday the market gapped up strongly and held strength thru most of the day until a last hour selloff brought it back to support in the 826 mark, where it bounced. Momentum is fading I think and you saw some traders taking profits during the second part of the day for good reason. We have been up very nicely since the Monday gap down. So now what?

I think you could see a pullback Friday after the jobs number comes out but it could really go either way. You gotta think some of the bad news not being so bad is sort of priced in for tomorrow so a pullback would make sense. But, also it could be one of the instances where the shorts just want no part of being short over the weekend especially IF the single piece of data that the bears have been hoarding for their short thesis--unemployment--comes in better than expected. Who really knows but I will be watching the 15min chart trend all day to form my bias. The pivot for Friday is 831.75 so make that your line in the sand to be much more willing to go into the weekend net long if price remains above that pivot.

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