There is a typical pattern: Gap up, close the gap over the next few days to test, then move up steadily. Also happens with gap down.sweetandsour wrote: ↑13 Dec 2022, 10:14"Gap and crap", the Fidelity guy says this morning. SPY has pretty much given everything back already this morning. We'll see tmorw if the Fed spoils any December rally, or "market Santa", traditionally the last week of the year + first two days of Jan.Del wrote: ↑13 Dec 2022, 08:37Really? Don't take it personally.
Late market trading is often low-volume, so it doesn't tell us as much as regular trades. But sometimes the night trades tell us that something is happening in foreign markets (Europe, Asia) which will move the opening prices in America.
A lot of American economic news drops an hour before the markets open.
Our problem is that Mr. Market is bipolar and off his meds. The inflation news was good, and rational investors said BUY. The opening price gapped up nicely, and indexes traded up.
But 30 minutes into the trading day, the panicky investors started taking profits. At 10:30, Indexes are trading below opening.... but still higher than yesterday's close. All the same, I didn't expect to see a dark candle after this morning's opening.
Tomorrow (Wed).... Fed press conference in the afternoon. Expect some serious volatility in the late afternoon as investors jump on every comment. Hopefully the Fed will talk about easing up on interest rate hikes as inflation appears to be cooling.
XLE is holding it opening price gap (YAY!). Tech sector is leading today's drop.
Today was a bit dramatic, but still typical. SPX dropped to test the bottom, and is working back up in afternoon trading.
Still, I didn't expect this. The gap was triggered by real news. I expected the market to digest the news and hold its gain. But Mr. Market is still nervous about what the Fed is going to say tomorrow. Bulls and bears are just staking their ground today. All of the crystal balls are murky.