Mission accomplished! SPX managed to close the 2/24 gap down today. Now what?
SPX pulled back a little bit when it hit the edge of this downside gap back in July. I don't know if it was enough to alleviate the usual selling when a gap of this magnitude is closed or not. We will have to see what transpires in the days ahead. The only remaining objective would be to forge a new high in SPX. Time will tell if that happens.
Neither the red/green count nor the short term indicator is in an overbought condition yet. There is more room to run if the market wants to.
I don't think SPX would get much past the old high should it get there on this go around. Overall, the market is pretty thin now and in need of a pullback. I guess we continue to play along with the bulls until we get a reason not to. We just have to watch to see if there is some kind of negative reaction after closing that big downside gap.
Bob
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