The Quandary

Last Monday, I mentioned two gaps the hadn't been filled and expected that the gap formed that morning to be the third. The quandary is that two of three have been filled, but both the level of confluence has not been tested, and significantly, the largest gap lies just below that at 1312.62 -- will these areas be tested or was yesterday the low?

I notice that as of 8:52 EST that futures, while up big on the jobs number, have only retraced 50% of the move from the 1373.50 to the 1325.25 lows. That leaves open the possibility that the we're just seen the first leg down (A), this is a leg higher (B), then a final leg follows to 1320 or 1300 on the futures (C).

It's a quandary. I don't know of anyone who forecasted that the market could get anywhere close to yesterday's low, which at 1329.17, was less than 5 points from my target. So I feel okay about being unsure. That's part of the game.

Let's see how high this market goes. 1350 on the cash could be hit and we'd still have the possibility of leg C.