SPDR S&P 500 (SPY)

[Newly2b]

Yes, a negligible .07 gap between the real bodies of the first and second candles, but a gap nonetheless. Ideally the real body of Candle 2 should be above the real bodies of 1 and 3, however the second gap is not required and usually not present. That said, the pattern loses effectiveness if any of the components are slightly off. The definitive thing will be how this third candle develops and most importantly, how far it penetrates into the white real body of that first candle.

As a daytrader (with rare overnight holds), I seldom look at the Monthly, so I appreciate your pointing out that potential ES formation. Always good to keep the longer term trend in mind even if one goes out flat each evening. . .

Newly