EXHAUSTION GAP!!!
-By Gary Kaltbaum- January 16,2018-
-To be brief, after a strong beginning of the year, on top of what we have seen the past 2-3 months, on top of what we have seen since the election, today’s action looks to be a classic exhaustion gap. After the run, the market gaps open big numbers and then sells off, giving all the gains back. It then heads lower as buyers are exhausted.-
-Typically, this means today’s highs (or around it) will be it for now. After all, Boeing (BA) being up 15% in 7 trading days is a little too much. We can give you many other examples but simply put, too far, too fast.-
-We suspect markets will now retrace a decent amount of this recent move. How much? No clue? How long? No clue. We are just here to identify what is in front of us and will now wait for other cards to come out of the deck.-
-As a reminder, markets do go down. Just a reminder! More to come!-