Last night we got a true gap down - gapping below previous...

Last night we got a true gap down - gapping below previous session lows and below both ST MAs.

This put the bears in the drivers seat but they well and truly dropped the ball by letting dip buyers overpower the close.

However, seeing as there has been enough trading above, it's a fair assumption that these particular dip buyers may have been made up of predominantly shorts closing to fake strength.

You'll see many sell offs start in the same fashion as this will encourage dip buyers to stay at it.

For bears to get the green light they need 4720 taken out and held.

For bulls to resume rally mode they will want to see 4765 taken but eyes should be on the ST MAs first.

For more suspense SPX will just resume the consolidation between these two prices before finally showing its hand.

Tough market so play safe...
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