The fade of the gap seems to be working out well as the SPY is now only down 0.36%.
The 1-5 min positive divergences that held on Tuesday to our surprise and confirmed yesterday, are still in place, therefore, I suspect that weakness in price is being accumulated and we still likely have more on an upside move before a significant correction.
The gap down today and how much has already been faded to the upside in the SPY.
Stops/orders hit as intraday resistance was crossed.
The 1 min SPY positive at the lows today, currently leading positive
The 2 min chart never inched down to confirm the gap down this a.m., part of the reason I suspected the gap down would be faded.
The 3 min not only did not confirm the gap down, it also was positive at the bottom and now leading positive
And the 5 min is in a continuing leading positive divergence.
It seems more upside is in the card, I'm keeping the SPY/IWM calls open for now.
As for the 15 min chart... There's still no improvement that would suggest any changes. So as of now, we are expecting some more near term upside followed by a decent size pullback.
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