An exhaustion gap appears at the end of a trend and its usually a sign of shifting momentum.
Until I can be sure, today´s gap could also be a continuation one, which would point, as the daily chart, to 1433/37 until the end of the week.
I will stay neutral above 1414...
As defended yday, I would not trade a straight move up, but I am definitely curious about the nature of today´s gap, as participants, for now, clearly already made his bets at the open. They bought calls, while dumping protecion, again...
Just enough to risk about 3 points (hourly).
Looking to a test to friday´s close...
(now -1 @ 1404 and stop @ 1407 ES_F)
One close under 10 days e.m.a. gave me some hope, as I was short, for a test to 22 days or even 50 days e.m.a.
It looks like we have more to run before I can get my (decent) pullback.
S&P500 can easily touch 1432 this week, as long as price keeps above 1400...
I am not going to trade a straight up move to there, so I will be waiting for some kind if consolidation here, to get in.
To sell this, S&P500 must be under 1407.75 (ES_F 1401/2), and the hourly chart must support a clear setup (as in previous plan)...
VIX is trying to tell something around here, but one should first listen to price, as it is the one who rules, the King...
