Good point. That 2/21-22 gap on SPY is certainly a technically significant gap but as per my video earlier today, many of the SPX sectors are currently or recently testing/tested those same gaps & have either already reversed (off top of bottom of gap) /and/or have yet to take them out.

First target was hit. It still looked good so I let it run till ~$414 before closing the trade in about 5.5% profit. Still 5% more potential to T2 but I suspect that we may bounce tomorrow, as lately the market has been going up on auto-pilot. Great trade set up. Thank you Randy for highlighting it!

I’m putting a pretty heavy weighting on those 2 weekly opening gaps (last Monday & today) on SPY & QQQ for tradable targets. Sometimes you will see both SPY & QQQ fall to support around the same time & sometimes, a tag of support (backfill of a gap, in this case) will trigger the bounce so I watch both & adjust accordingly.
I also posted some potential near-term targets on /NQ in the second post today which can be viewed here: https://rightsideofthechart.com/index-etf-futures-support-level-price-targets/#comments

Chart

WOW, great catch!!

Randy is a superb textbook technical analyst … unfortunately this is not a textbook crash/recovery experience …. can’t swim against a 9 Trillion Dollar
Tsunami of stimulus … new textbook being written at the expense of our short accounts

I wish I would have given this trade 6 weeks to season. True to form Randy was a tad early :-(

It’s in perpetual suspension … it’s the short from hell. Not for the faint of heart nor the timid investor. I’m looking to make a small fortune on this trade …. unfortunately it’s taking a large one to do it :-(

I believe Randy initially started scaling in below 195 so 139 looks like a good spot to begin accumulating

Randy said he was not going to move the stop again so it is officially stopped out. Although he added that he is keeping his position as the divergence high is still intact and extending. If we get a gap and crap today then the DH will only be extended. I think most technical traders were calling for a pop above the SMA 200 day before a trend reversal. It is painful being short right now so I wish I’d taken the first stop loss before he moved it.