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Market Update: Open Sold, Close Day

November 4, 2008 11:06 AM

If not for the election day, I would say extreme caution here, especially late in the day. I believe this open was sold, but I missed the true open. If this open was sold, and i believe it was, then “normally” that could be the high of the day. At the very least, the entire gap should eventually fill. If it doesn’t not fill early, then watch out for it to fill at the close. We HAVE to clear 9520 on the Dow and 988 on the SP or this will likely sell down into the close. If we can clear those highs, it will free up the chart. However, I do not like opens like this, on any level. If it was not election day, traders would shred this thing right here and we would likely go negative.

At the very least, this is not a typical trend day. This gap would “normally” fill here I believe if a normal day. If today will act as a normal day I am not sure. I am guessing the shorts will sit on the sidelines here until after the election.

Update: The highs have cleared. Unfortunately, I have no idea where the low is if we reverse. Selling the open and then clearing the highs like this is only because of election day. This normally does not happen or at least is somewhat unusual and is generally a short covering pop that creates a huge house of cards for late day selling. That may not happen today, but your guess is as good as mine.

Written by Tom@StockBlade.com · Filed Under SP Futures 

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