I've talked about this numerous times, over the last few weeks I've demonstrated it nearly every day of the last two weeks, it's not particular to 3C, but 3C uncovered it for me in the market.
"Whatever the ending 3C indication is at the close, the next day will pick up right where it left off no matter what happened overnight".
Last week I predicted the opening/early market behavior based on the afternoon charts and was correct every day,
the most recent example is yesterday's Put position in SLV.
This is a market concept, I've just learned about it through 3C, I don't have the exact answers other than market maker inventory and the losses or gains they'd experience if price ran too far away from the previous close, but they have ways to make up for that, especially on the NYSE side where the Specialist sets the opening price and even time as opposed to the market setting it on the NASDAQ.
This is yesterday's 4 p.m. close in Silver Futures at $24.505. Overnight Silver ran up to a high of $25.16.
However at 9:30 this morning Silver had returned to the area of the 4 p.m. close at a price of $$24.53, only two and a half cents higher than the 4 p.m. close and moving down fast,
The 3 min 3C chart of SLV yesterday looked like SLV was going to see weakness on the close for this morning, not a huge gap up, the green arrow is this morning's open.
As you can see on a 1 min chart, SLV, despite moving around a bit last night, picked up right where it left off yesterday.
Then this morning the range support from yesterday
where all the stops and limits would be congregated (ANOTHER MARKET CONCEPT) were hit as you can see by the volume. We'll have to wait a little bit to see if there was any accumulation there or just distribution.
However the point of the post was the nature of the closing 3C divergence often picks up right where it closed upon the next open,
even if it's over the weekend! This is not because of 3C obviously, but 3C allows us to see this peculiar market concept.
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