both ES futs (S&P) and AAPL continued higher overnight. thus, likely a gap up at open. (charts below)
key question is whether it continues up this morning or bearish profit-takers dump it back down.
yesterday rendered a long white (green) candle.
SPY chart during downward channel since summer shows that after a long white candle (big rally day), in the middle of the oscillation upward, the following day was often a continuation of the rally.
combined with • the oscillation in early oct back up to dsma50 • the rally higher overnight • SPY punching upward through dsma200 yesterday • AAPL earnings AH today
my guess is we see another short-covering rally today with bears not regaining control until we near the dsma50, currently 433.5, declining each day we're under it.
as before, i still anticipate more sell-off days ahead before the xmas retail rallies break higher into EOY to pad the annual ROI figures for the funds.
but i'm guessing will see another strong rally, at least this morning, if not all day into close, and i'll be hesitant to risk puts if bears induce a plunge.
yesterday afternoon, we saw clearly that bots can chew upward through even aggressive volume selling, especially when trillion-asset funds need to cover massive short positions before the EOY xmas rally.
time will tell. all we can do is play the chart signals and remain nimble if they shift against us. .
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