Can this morning's gap down lows hold?
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, 04-23-2012 at 10:48 AM (3044 Views)
This emotional, Monday morning gap down is at a crucial point. If the selling continues and we see a new low in April (solid red line), we can draw in a new downtrend line (red dashed line).
If this morning's lows hold, the downtrend line would not be drawn yet, and we could have a double bottom situation. The afternoon trading will be key.
As we talked about in today's commentary the Monday after option expiration week in April is historically weak, but the rest of the week tends to do better.