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Fall Into the Gap 12/21/21

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Just after the market close yesterday, I wrote:  

11 hours ago, DrStool said:

Gap up tomorrow? Ho Ho Ho. 


Here at 4 AM in New York, the gap is set up, but the question remains. Will the market fall into the gap, or extend it?

Resistance is now established at 4612. Support right now (4 AM ET) is around  4575, rising to 4585 around the New York open at 9:30 (15:30 CET where I am).  

The hourly indicators had set up a nice bullish pattern at the second low, which we were able to note yesterday.

But now they're neutral. This could go either way, but given that the indicators are near their respective zero lines, the potential exists for a big move. Either way. Problem is, we don't know which way yet. I think that the direction of the breakout from the 4575-4612 range will be the tell. We'll want to watch the direction of the indicators before. They may give an advance warning. 



Meanwhile for the big picture. 

Is It Time to Quit if Your Chart Picks Crushed the Market Last Week?

How to Tell When This Inconclusive Market Turns Dangerous

Get Ready for a Slow Moving, but Perfect Storm

Swing Trade Screens – More Buys Than Sells Again This Week (But I ignored them and stayed 90% short). Update to follow shortly. 

Prepare for Market Doom, the Moment of Truth Is Here 

Gold Hangs By a Thread on the Eve of Destruction

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1 hour ago, Jorma said:

Another $65bn in bills up but no coupons yet for end of quarter.  

Too early. It is supposed to be $151 billion. I see no reason for that to be different. The coupon schedule doesn't change from the TBAC estimate. 

$85 billion in new T-bills today. $60 billion tomorrow. Paydown of $18 billion on Thursday G-d knows why, and then another $60 billion in issuance next Tuesday. So that's $187 billion in net new bills over the next week, then they clobber the market with $151 billion in longer term paper. 

I don't know about you, but I have a guess on where the bias will be. 

Get Ready for a Slow Moving, but Perfect Storm



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