Thursday, April 30, 2009

04.30.09 - Big Gap Reversal

The market gap higher pushed short term indicators well into overbought territory. Although first hour indications pointed towards a potential trend day, volume wasn't there and the Advance - Decline line did not confirm the move. Then the VIX made a sharp reversal higher just ahead of the "official" Chrysler bankruptcy announcement. Though is seems we are headed for a gap fill at the mid-day, it's important to note that Cumulative Tick remains net positive and that Up Volume continues to outpace Down Volume for now.

Reading: Quantifiable Edges/ 10-Day High Gaps

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