Consolidates under the previous gap resistance for the whole day, a setup for a tomorrow’s Island Reversal? Well, I don’t believe it, as there’re too many unfilled gaps within too short time. A gap up open maybe (let’s just forget about the fact that the SPY has been gapped up for 7 days in a row), but that gap should be filled within days. The bottom line, as mentioned in the weekend report, I expect the market to pullback from here (maybe a reversal day on Turnaround Tuesday tomorrow) until around 03/16. Although I truly believe what Gann Days said that 03/06 should be an very important day, but for now I simply find it hard to believe it’s going to be a major top though.
In case you want to know, when both VIX and SPY were closed in green, 10 out of 18 times recently (56%) a red day the next day. Well, not much edge to bet on.