Quick update this evening.
We filled the 195 Gap but left a new Gap to the upside around 196. That will likely be filled eventually. For tomorrow, there is about 75% chance that we open green. However, today’s low will most likely be taken out over the coming days. We might be at the beginning of a triangle pattern here so I will update more this weekend.
Something to note, I have noticed that long term bonds have been particularity weak while the market has heavily sold off. This is not normal market action. I suspect that other countries and especially China have begun unloading our bonds to raise cash to help deal with the global economic slow down in their own countries. Lets see if this is a short term blip or if this continues over the next few weeks and months. If this does continue it could artificially raise our interest rates.