Post-open Review… Pent-up.

Gap up extends.

Yesterday’s 2918.75 high was being attacked when I recorded this morning’s pre-open Market Tour, and published the First Trade blog post: “If overnight price improvement is going to be predictive, then it’s time to start being obvious about it.”

The market soon obliged by surging up to 2927.00. The open was greeted several ticks higher, and the opening 15 minutes of volatility trended up to establish strong-handed sponsorship. Post-open action has extended already up to 2933.00.

Gapping up does two things. First, it entrenches the rally. So, even if price were to collapse suddenly, today’s gap up above all prior highs will need to be retested eventually from below. Second, gapping up serves by proxy to convert yesterday’s WedEX to actively bullish. That refers to expiration’s influence tomorrow afternoon, but any interim dip should recover.

Keep in mind that historically a trend extreme is very unlikely at expiration. In case of a pullback today, the rally’s health depends on not yet touching “lower prior highs” from yesterday.