Well the indices finished off their lows of the day and the three sisters finished strong in the white in the last hour. The VIX has regressed to its 10-day average and the up/down ratio is at 30%. New 20 day highs and 20 day lows are neutral both below 500.
All of this suggests that the inflation scare of today will be forgotten tomorrow and the market will rebound strongly (remember rule 1).
I passed on a couple of what turned out to be good buys this morning but I did reload gold at the close. Hoping for a quick scalp tomorrow.
As you know I like to play gap ups gap downs. When the market is going down as it was today the gap up is the more profitable play since it already has momentum. However if you get a gap down that turns around it will be a very strong play. I saw one of these today - GWR - and here is what that looked like on the 15 minute charts.
Had I been playing attention I probably would have played off the 3rd bar.
Chart comes from prophet.net where I also got the GWR gap down from one of my scans.