As I don't yet have a ChartsEdge map for today, 3/10, I'll just point out the obvious - that the markets are "on track" for the scenario pointed by our own analysis, the discussions posted here this weekend, and the ChartsEdge weekly forecast - that of a rally this week, whether it may be muted or fairly strong. But only a bear market rally!
There's daytrading research that shows that Monday and Thursday are the days most liikely to have the following pattern when there is an opening gap: A test to close the gap, followed by a reversal back in direction of the trend indicated by the gap. Not 100% of course, but more likely than not to occur with opening gaps on Mondays and Thursdays.
So, what about other days like today? We've got to consider the possibility that this is part of a C-wave (or 3rd wave) within the rally effort. So there may be a fill-the-gap effort - or not. After the first 20-30 minutes of trade, watch the volumes and indicators carefully. I'll post more if/when I have the chance this morning.
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Folks, a couple of pointers to articles you may want to read if you haven't already. One is the Monday Morning Outlook yesterday at Schaeffer's Research site, where Todd Salamone and Rocky White have done their usual good job of presenting insight into VIX and the markets. Another is the current COT-based trade setup information for the S&P 500 at COTS Timer blogspot which also has the idea of a brief rally followed by new lows.
As always, good luck and be careful out there - happy trading!
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