Selling were able to push the market back into Friday morning's Google-inspired gaps. Things were even worse for the the Russell 2000 which gave back all of Friday's gains and then some. It's starting to look like the buying panic scenario isn't going to happen and resistance will hold again after all.
Trend Table
One downgrade today
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Primary | Down | Down | Down |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Lat(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Doesn't the April 16th gap up need to be closed, too?
I don't know if any gaps *have to* or *need to* be filled but it could certainly happen.
A partial fill of that gap could still happen and keep the short-term uptrend intact if it happened soon. Otherwise a fill would mean a breakdown in the short-term uptrend, which a lot of bulls really don't want to see. I think with 2 of the "4 horsemen" reporting today we'll get a good indicator of how the market should perform over the next couple days. Tech earnings have been good so far (GOOG, EMC) but AAPL likes to guide softly, right? AMZN is hard to predict sometimes b/c it's a retailer but it offers tech services also. I'm anxious to see what happens in the AH today.
"Need to" was probably a poor choice of words. It's been my understanding that common gaps are usually filled. See the last paragraph at http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:gaps_and_gap_analysis and see http://www.thectr.com/glossaries/english.php#Gap