Tuesday, August 24, 2010

Very Early

This however is the strongest signal I've seen suggesting the gap will be faded to the upside.

An opening negative divergence on the dollar (via UUP) which trades opposite of the market. It's not fully formed yet, but it does appear to be there working on it. Remember, to fade the gap down, they need to be buyers down here, so unless another wave of selling starts, I'd assume for the moment that is the higher probability, at least for the a.m. trade.

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