In the previous update we reviewed the oncoming market bounce with a few details. Here are a few pictures of representative ETFs showing upside gaps that several disparate markets may think about filling. This is pending the bounce actually gaining traction, which it has not yet done.
GDX has a gap at around 23.60 and another just above 25 and the SMA 50.
XLE has a fat gap just below 76.
Gas, wild man that it can be, could look upward to the SMA 50 where there is a gap on UNG.
Oil fund USO may be looking at 69.
DBC’s gap is around 24.80. I’d have to evaluate whether to hold my short on this. Unlike with TSLA and XLY shorts, I was tardy on this one.
QQQ wouldn’t dare bounce to the gap just above the SMA 50, would it? Nah, no way. Or maybe… way. Bear market rallies, and all. The 1st objective on a chart like this is to take out the very shortest-term moving average which, in this case is the EMA 10 at 283.88. So obviously bulls have a lot of work to do if they want to drum up a short covering rally.
SMH has a gap yawning at 217.
Finally, the World (ex-US) ETF has a gap at 42 and then a major bear rally objective just above 45.
All of the above are just FYI for some perspective should a rally get going.