Ok. Thx. Today we’ve seen some more follow through to yesterday’s selling but I suspect that is just a combination of profit taking, longs that were trapped at the Sept highs & have been waiting for a bounce to get out, as well as selling pressure from those shorting this bounce. Maybe not but if we close green today I that should help the case for a near-term rally that might have at least one more leg higher.

Technically, the bottom of that gap would be the previous day’s close but quite often you will get a reversal off a recent reaction, particularly from the previous day’s trading, that comes in just above the closing price/bottom of the gap.

As I type, I’m not as bullish on the pullback as I was 15 or 20-minutes ago when I expected & would have preferred to see the gap get bought up somewhat aggressively well before a full or near backfill so at this time, I am starting to question the health of this pullback although it is still within the realm of a normal pullback but again, it would have helped the bullish case to see the pullback aggressively bought up before a backfill so now I’ll have to assess the markets as they trade from here.
The reason that I have not added any index etfs or stocks as official longs yesterday or today was exactly because of this (the fact that yesterday’s reversal & bullish price action could very well prove to be another 1 or 2-day wonder like so many others in recent months).

I can’t say for sure that it will pan out but I can say that a long on UDOW or any index etf on backfill of that indexes gap with the appropriate stop in place somewhat below is certainly objective.

Technically speaking, the gaps are backfilled if & when SPY & QQQ fall to yesterday’s closing values although quite often, if there is a reaction high just above that level, that will contain a pullback (partial backfill). As of now, QQQ & SPY have not made full backfills of today’s gaps yet.

All the better for the bullish case if the gaps are backfilled as that wouldn’t leave any unfinished business behind & maybe they will be but I don’t favor it.

DJI ‘s gap fill , that is .