Indexes Fill Tuesday Price Gap Now Where?

Chris Vermeulen |

The 30-minute chart price pattern with a large gap down in price on Tuesday morning created what we call a “Gap Window”. Almost all gaps in the SP500 get filled eventually, and both the top and bottom areas of a gap window become short-term resistance or support.



A three-wave a-b-c correction is generally what causes stop orders to be run, panic selling, and creates a pivot low. This is displayed with a red line on the chart.

If this very short-term pattern unfolds it would create fantastic entry point because several different types of analysis come into play at the same time and price. The green 20-day simple moving average and our short-term cycle projection would act as support and a cycle low.

DISCLOSURE: I do not own ES mini futures position


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