Monday, March 7, 2011
Gap Down Signal
I am getting a fairly strong gap down signal, at least a 75% probability. I'm not too bearish on the market, but I do think we've got to flush out some longs soon before we can thrust higher for good. A gap down tomorrow with another move up in oil would be a good opportunity to flush out the weak hands. Otherwise we'll likely just have more listless trading and choppiness.
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3 comments:
75% is pretty strong indicator. Can you please explain what is giving you this signal?
Gap down would create a comfortable buying opp. On the other hand a gap up with lower oil associated with an all day grind higher would leave the buyers bidding below at their comfort zone. The vix moved up too much for this shallow selloff . Everybody is overhedged there is a floor in the mkt.
It's a system signal based on last 5 days trading.
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