I’ve shown before that 2%+ gaps down almost always bounce at some point in the next few days. The last time I reviewed this can be found here:
This morning I added a few filters and looked at just what might be expected on the day of the gap. This first study shows what has happened when the 2% gap down occured after a 100-day low.
Low instances but a possbile upside tendency. But next is the bad news. The study below looks at 2% gaps down on Mondays.
Tough call this morning. I think we should see a bounce in the next few days, but it may not be immediate.