Will We FIll the Gap?

I’m sure that I’m not the only one surprised by the late day rally we had today. Breakouts are usually preceded by days of consolidation. The last couple days have been no exception. Instead of backing and filling it looks like we are just streaking up to fill the gap that was created on the 26th of June. Tomorrow will be an important day to say the least. I still see the possibility of us retracing the last 6 day rally. In my eyes the breaking point will be the open tomorrow. If we can stay above the daily pivot which is 1267.75 then we could see a true break of 1279 and a test of 1292 later on in the week to fill the gap. If we do fail the pivot tomorrow I would expect the rest of the week to be down. If we are down it will be interesting to see if the 1240 area holds. It looks like the beginning of a big inverted head and shoulders to me.