Bull Trap?

Monday turned out to be pretty damn bullish from an opening gap standpoint that was not filled until the end of day when we bounced in the mid 820s (just above the pivot) and then rallied into the close but off the highs of the day. I liked that we closed strong and would think that the market can continue higher the next few days at least.

The interesting part about todays pullback of 850 was that it came down to about 825 and then proceeded to bounce. Why dat?

Well that 825.50 level was a ambush long trade that was a 50% retracement of the rally from Friday's lows to Monday's highs. These markets don't just move like this because of coincidence. Take note. By the way the target on the long ambush that began late Monday is up at 861.

For Tuesday the pivot point is 835.50. We are trading up strongly overnight so far and are at 841. If we gap up and hold the pivot then I would go long the market at that pivot level. But the pivot just above the gap fill so they may want to fill that gap, assuming it does gap up of course. If it fills the gap and bumps its head on the pivot (resistance) and fails then I would be taking shorts below that pivot.

Overall I do think we have a chance at rallying up to the 866 level the next few days if they break this market thru the 850 area.