The Bulls Have An Appetite- So Far
$SPY today was the first open gap lower in 8 days. The last time we opened lower was on 5/18, the key reversal day that set up this recent bull swing higher.
But it’s not the gap lower I really care about, it’s how the regular session trades after that opening bell rings. As I wrote in this morning’s market analysis note to members, today’s gap lower will be a great gauge to measure the bulls appetite.
And so far today, the bulls have an appetite.
Here’s the intraday session so far and you can see the lows of the day were put in during the first 10 minutes, and the trend has been higher since.
We’ve filled the gap, and we’ve rallied to green on the day.
Bulls passed the first round of tests but there’s still one important one left.
Can they hold these gains throughout the session and close us strongly?
Things look good so far, but we’ll need to wait a few more hours to find out.
As far as our portfolio, our exposure has been reduced a bit over the past couple of days but we continue to remain moderately long.
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