Continued gap higher opens will usually end in a sharp reversal day, however, that has not occurred and the markets remain strong at this time. When you think of all the negative news that has been thrown at these markets it is really amazing to see the rally from the March 16, 2011 cycle low. However, traders must be aware that gap higher opens usually do not last and are not a sign of a healthy rally.
Continued gap higher opens will usually end in a sharp reversal day, however, that has not occurred and the markets remain strong at this time. When you think of all the negative news that has been thrown at these markets it is really amazing to see the rally from the March 16, 2011 cycle low. However, traders must be aware that gap higher opens usually do not last and are not a sign of a healthy rally.
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