The Gaps have been filled

Hi all,

Just a quick note on where we are after the Powell testimony yesterday.

The gap lower at 3980 was filled yesterday so congrats to those who took that trade that we discussed all week from the gap higher at 4080. Apple also filled it’s first gap lower so again congrats if you took that.

I could write 10 pages on why the market should continue lower but I’m going to keep this simple because now that the gap lower has been filled it’s basically simple, there are no more gaps left to the downside until 3780.

For the sellers it’s now break the 200 day at 3940 or bust, if they can’t achieve that then we are going back higher to fill the gap at 4090, if that holds then it’s on to 4150

For buyers watch for resistance at 4037 if we break the 50 day at 3994.

If sellers can break the 200 day moving average then watch those demand zones lower that we talked about here before at 3800 and 3750.

The big data this week is the NFP data one hour before the open on Friday, if the number is bad the market will like it as bad news is good news. If it’s a strong number then the sellers have their big shot at those lows.

All the best,

David