When originally managing a potential pullback in the US markets back in Q4 2021 we noted, but (I) did not necessarily expect that the lower gaps could fill. We noted at the time that it could represent a good clean out of over-bullish market sentiment.
I looks like the gaps are filling or going to fill. The indexes would want to avoid lower lows to the October lows or that would represent a technical breakdown (if it’s not a real fast whipsaw and reversal).
Semi is getting killed and this morning I maybe hastily added leader, NVDA because of a gap fill of its own and SOX proximity to support. But… a gap at 3200. So at this point a bullish buyer is catching knives. A lot of risk is being taken out of US stocks, however, but only provided this is not the start of a real bear market, which let’s admit, this market richly deserves. Well, that is opinion, but…
