The SPX prints an island reversal pattern. Those do not occur too often. Price fell through the orange gap mid-month and then staged a recovery rally into month-end on Friday.
Price likes to fill gaps so the bears actually want price to come up to fill that gap at 4400-4410 because that buttons up the gap, and nicely seals the gaps permitting price to then move lower in earnest. However, instead of filling the gap, price catapults up through the gap taking out the mid-month highs.
When price moves up and jumps back through the same gap that printed on the way down, that is called an island reversal pattern. The pattern can also occur when price gaps higher, forms an island, and then falls back through the gap heading lower. You can see that price spent the back-half of June on the green island with the palm tree. Price now jumps off the island gapping higher on the Fed Chairman happy talk, inflation data and AI orgy.
The big gap from Friday morning at 4400-4420 will need filled at some point forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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