Nov. 8, 2006: Gap down & Up

The market sold off in globex but rebounded and chopped during day before a late b/o. I expected a consolidation and the action resets price levels to '0' compared to previous session. It should be noted that prices held up well in the face of a Dems victory and that says something. What does it say? No idea lol....

As far as trade setups I took the short around noon time and left afterwards so the b/o later on was a good opportunity missed: was a nice tri b/o accompanied by breadth. I have misjudged the pattern on Sox and it did hold support vs. tanking further down as I suspected.

As for tomorrow's session, I expect some retracement to the downside. By looking at the Dow & Sox, and ER for that matter one would expect a solid continuation move to the upside. Maybe.. but some resistance should be expected at these levels given the recent runup. Will re-evaluate based on the reports released before morning session.