We have a double-gap situation on SPX which appears to be setting up a Bullish Island Reversal.
We can see the "island" in the bottom of the picture is clearly formed and separated by a double-gap.
This is forming at the end of a suspected ABC move, and during conditions where the markets are at the bottom of the MACD and RSI ranges.
We can see that there are clear upside gaps in the picture and there are also gaps much further up.
I don't know how much upside to expect but, I would not be shorting here. Take profit on any shorts and consider going long for period.
We can see the "island" in the bottom of the picture is clearly formed and separated by a double-gap.
This is forming at the end of a suspected ABC move, and during conditions where the markets are at the bottom of the MACD and RSI ranges.
We can see that there are clear upside gaps in the picture and there are also gaps much further up.
I don't know how much upside to expect but, I would not be shorting here. Take profit on any shorts and consider going long for period.
