Sorry I didn't put up anything last night. By the time I got to even look at the charts it was nearly 11pm, and I was exhausted. As the markets are about to open, my essential read on the charts is that so far we are tracing out an impulsive move. This impulsive move has a near term target of 1225. A failure to reach it could be very bearish based on a number technical indicators that turned bearish on the last drop and the divergences that would be confirmed with an early reversal. I would expect the gap to not be filled before we reach that target, but if it is, be careful of another whipsaw to the upside that occur as soon as the gap is filled.
Without a reversal today, I'll be closing my FAZ calls, which is too bad because the trade looked so good, but that is how it goes.
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