Screen shot of Tension and Decay with McClellan Momentum Numbers
Tension closed at the same level as yesterday at about -19%.
This suggests to me the market is unclear what’s next.
The Gap Energy : Resistance relationship is about the same as yesterday. the -28% gap energy suggests the market wants to gap down, while the 29% trader resistance tells you traders are hesitant to jump in – and without traders markets don’t sustain moves.
I don’t expect the market to go anywhere over night.
Tomorrow, the market is going to need to develop some energy in either direction. That will show up in the form of Growth. The ADDC grinding in a direction all day, and the McClellan numbers strengthening over time. Until that happens, the market is going to continue to range and favor fading over position trading.
Summation: No Large gap expected. The market needs growth.