Thursday, October 20, 2011

Fade the gap?

Not anymore.

I was preparing a post to "Fade the gap up" because 3C as well as FX markets were showing it wasn't going to hold, unfortunately that little trade was wiped off the table when ES destroyed the gap before I could even capture and post the charts...

 Here's the 5 min ES which shows a positive divergence overnight which led to what looked like it was going to be a higher open, but a negative divergence erased it quickly.

 No doubt in part because of a rapidly falling Euro

 Here's the SPY extended hours since the close with the EOD positive divergence and the same negative divergence this a.m.

So a larger gap worth fading turned in to a lost opportunity.

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