Retraces of 38% or less are very bullish when they stand alone but with us revisiting this area again, I'm wondering if the daily is setting the ground work for a possible head-and-shoulders formation. Either way it is Bullish but just how much?
Well, thank you for acknowledging facts. Anyhow, when such a large and consecutive gaps are left behind, they act as a huge magnet for the price. Specially because it happened after a run up from 2520, so it wasn't like a break out gap after a longer consolidation. (like the one in Sept.)<<<price was in a 70 points range for 2-3 months before that.
Let's do it numerically from the yahoo chart you linked to before: 2/22 Low of day 2697.77 High of day 2731.26 2/23 Low of day 2713.74 High of day 2747.76 Thus the two days overlapped in pricing from 2713.74 to 2731.26. ---The opening on 2/23 was 2715.80 which was inside the pricing of the previous day so there is no gap.--In fact we pulled back a couple of points off the open on 2/23 putting the overlap further into the pricing of 2/22
The gaps you show in your picture do not have overlaps with the previous day's pricing, thus they are gaps.
We are struggling here right where I thought we would. --Around 2720. --Cash charting not ready just yet for upmove.
If we get down to 2697---I will begin looking at shorting short term absent an obvious signal before that.
There is a chance we can still revisit or come close to 82 and do a double tap and reverse, But you know how Head-and-Shoulders work, they can lean?