Gapping Down

Thus far the gap down appears as if it will take out any recent support areas, this could be one of those days I mentioned in a down trend-about 1 in 5 that actually moves a market significantly lower, this is the reason I try not to trade my long term positions, I consider them trend or position trades. The 25% cash that I always like to have on hand can be used to trade bounces and countertrend moves.

What will be interesting is if we get accumulation on the gap down, I except it to be faded and the market to rise a bit off the gap, if we get accumulation, then we could be looking at a star, doji or hammer close. We'll see, for right now, keep an eye on those short limit orders.