Gap Fills in Place

Now that we have gap fills in place, we are just starting to see some initial signs of a probable trend change toward lateral, this is the same pattern all week, gap up, fade the gap and then move sideways and accumulate a bit.

I'm still looking for IWM to break under $116.19 before I add anything.

I'd remain patient, this pattern seems to be here for a reason, meaning I think the "W" base will fire, I am NOT sure of its performance, it may be quite weak considering.

IWM gap fill...

If I use the standard measured move, the target for the IWM would be about 2 points above the base which is around $120.

The SPY has a different pattern, more of an ascending triangle, although it's in the wrong place for the price pattern according to the dogma of technical analysis, however most traders don't know or care about the rules or confirmation of a pattern, they see a pattern and assume it's real. For instance a bullish ascending triangle like the SPY has should have diminishing volume and most importantly, it's a consolidation/continuation pattern meaning it "SHOULD" follow a preceding uptrend, not down. In any case, the measured move for the SPY would be $189.50.

The Q's measured move would be $90.50 on another ascending triangle in the wrong place- a PERFECT head fake set up and the DIA would be about $166.

As far as signals for an imminent move, they are not there yet.

HYG CONTINUES TO TRY TO GET THE ALGOS TO BITE, IT ALSO CONTINUES TO DISTRIBUTE.

The HYG gap up may be part of what is causing the market to gap up, in any case on each move higher the distribution is deeper and deeper, it's in bad shape not only near term, but at the entire stage 3 top for the Feb rally.