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Market Open: Gap Down Was Bought - But

October 24, 2008 12:03 PM

The gap down was bought and has risen since. That trade is over as the gap has basically filled. I do not like this action. This is the third time the lows have been tested, and therefore buyers will be exhausted down there soon. That tells me the odds of a new low on the SP is reasonably high. This is going to be a difficult call today as on one hand we have to close above the open to have meaning, on the other hand I smell a false bottom even if that happens.

For today, today’s low is likely critical on these gap days. If it clears, especially into the close, there should be panic. Dow 8165 is what is holding us here and caused buyers there today and today’s low is on a downtrend line. I am skeptical - at best.

In addition, yesterday’s buyers at the close are getting hammered for doing it. Therefore, I doubt we will see that nonsense today.

Written by Tom@StockBlade.com · Filed Under Pre-Open 

Comments

15 Responses to “Market Open: Gap Down Was Bought - But”

  1. Tom@StockBlade.com on October 24th, 2008 2:03 pm

    It should try and reverse in this 860 range here… but big pressure into the close would not surprise me today… I almost expect it…but todays low is key

  2. Tom@StockBlade.com on October 24th, 2008 2:20 pm

    873 already, boy couldnt have guessed that… ha

  3. Tom@StockBlade.com on October 24th, 2008 2:22 pm

    There is no firm high for today as i see things…. If we can get a firm reversal off a high to give traders a point to short it, then we may see pressure late… Todays lows almost have to hold into the close to avoid a possible meltdown and challenge of the real lows..

  4. Tom@StockBlade.com on October 24th, 2008 2:45 pm

    Shot up off that reversal at just under 860 to about 880…

  5. Tom@StockBlade.com on October 24th, 2008 2:46 pm

    My hunch is if we make one more push higher, we may get a firm high to sell into the close… but guessing

  6. Tom@StockBlade.com on October 24th, 2008 3:00 pm

    Back near the highs of the day… if we can get a reversal after 3, we may see selling after. I just cannot imagine they will push this positive again today into the close…but who knows

  7. Tom@StockBlade.com on October 24th, 2008 3:01 pm

    new highs… hmmm

  8. Tom@StockBlade.com on October 24th, 2008 3:07 pm

    going as planned… we need to close out the next 8 mins below 8480 or so on the Dow to give traders a firm high to sell…

  9. Tom@StockBlade.com on October 24th, 2008 3:11 pm

    hmmmm its trying to stay up… bouncing above the lows is getting very very old

  10. Tom@StockBlade.com on October 24th, 2008 3:14 pm

    There we go…. that should be the high…lets see if they will tear this thing apart now

  11. Tom@StockBlade.com on October 24th, 2008 3:16 pm

    If they want to take this down, traders have the numbers now….

  12. Tom@StockBlade.com on October 24th, 2008 3:19 pm

    8426 already…get down there…

  13. Tom@StockBlade.com on October 24th, 2008 3:22 pm

    bounced just above 8400… key sma is there… this may get very volatile into the close again, not sure… the traders have the numbers…on both sides

  14. Tom@StockBlade.com on October 24th, 2008 3:24 pm

    If we clear this high, shorts probably will scramble for cover… there will be people short below the high

  15. Tom@StockBlade.com on October 24th, 2008 3:38 pm

    The range looks like it may be in…we would need to break below 8400 it looks like to maybe get late selling pressure

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