Will The Gap Be Filled?

The SOXX opened gap-down and has continued lower during the early session.

Some gaps are never filled.

The chart from yesterday’s post has been updated with today’s action so far.

It’s clear, the market has respected the Fibonacci sequence.

Now that it’s obvious, it’s likely to morph into something else (not advice, not a recommendation).

Semiconductors SOXX, Daily

Based on where we are in this historic market bubble (i.e., continuing lower), probabilities for retrace and gap-fill at this point, are low (not advice, not a recommendation).

Short Trade SOXX-26-01

When an attempt was made to sell short SOXX, increase position size, the broker indicated “no additional shares available”.

That short was quickly covered (with profit) and another short opened via 3X inverse fund SOXS, as SOXS-26-01 (not advice, not a recommendation).

Trading leveraged inverse funds on a medium-term basis requires more active monitoring, so one does not get whacked with an adverse move. 🙂

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279