A quick update of the main US indexes shows the daily chart gaps on SPX, NDX & SOX, with the following notes.
- SPX appears to be in a small symmetrical triangle, which will break one way or the other soon. TAs (including myself) tend to view Sym-Tris as continuation patterns. If this one continues, it is small enough that its implication is only to the gap area around 4000. That’s handy.
- NDX ticked a new low before today’s bounce. Come on baby, get that gap filled.
- SOX also ticked a new low, taking out a support level, which it is bouncing to test today. Again, get that gap below 3000 the heck out of there.
Nothing is ever certain, but with the bleak sentiment profile I would be willing to take on risk for a tradable bounce, rally or new bull leg and having these gaps filled and out of the way would be a plus in that regard.
