I don''t think the market is pulling a gap fill, it really doesn't need it as this is a short term 1-day oversold bounce, the gap will be revisited on the downside soon enough, I believe it is the weakness seen in the overnight session and so far the cash session.
Look at the intraday 3C charts, they have been right on all morning.
SPY intraday negative divergence and no opening confirmation/
The same with the QQQ
And IWM
HYG seems to be stemming some of the negative tone from earlier, but the one asset that suggests we may not be in for a quick downside failure of this bounce as quickly as it appears is this 3 min VXX chart.
Overall there's a large and beautiful positive divergence that should take VXX higher in coming days, but with a divergence that deep to the right, what would be missing if we had a sudden upside reversal? Hint, the reversal would be very "V" shaped. If you said a reversal process, you are correct. There doesn't need to be a very large one, but a move up from here would be a very sharp reversal event and they just aren't that common.
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