Replies to post #765 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I agree with you on that point, bu the filling should serve as a springboard for another advance past last Friday's high. If we stay too long below that gap, I fear that a major decline will ensue. Right now, however, most of my indicator are quite positive and consider this retrenchment "natural and healthy" (I know, I sound like a typical TV commentator <g ). I still consider the coming rally to ne "puny" however and not to exceed the 1526/55 range, In essence meeting major resistance at the early May mini explosion.

My intentions are (depending on the market actual performance in the morning) to go back under 10% by the close tomorrow night in expectation of a continuation of the "puny rally".

Zeev

[ajtj99]

What I'm seeing in the charts is possibly a 10-point rise in in the first hour and then a drop back down to test the gap.

We either fill half the COMP gap or all the gap, IMO. It will be important to watch the other gaps if they begin to fill. We could bounce after an SPX gap fills, for example, regardless of whether the COMP filled or not (I doubt this happens, but it is something to watch out for).

The alternative is that we drop from the open and reach the bottom of the gap in the first hour. That would seem the less likely possibility.

I am in agreement that this should explode up, but only because of our close proximity to options expiration. I think we drop to close to COMP 1335 by the end of July / early August and repeat what we've been doing since May during that time period.