2/4/25 - Gap down, traders will see strength of FT selling
The market closed as a bull bar in its upper half with prominent tails above and below.
Yesterday, we said traders would see if the bulls could create follow-through buying. If they could, the market may trade a little higher towards the Mar 25 high area.
The market looks like it will open almost 1% lower today.
The bulls hope that yesterday's low will act as support.
They hope to get a second leg sideways to up to retest yesterday's high, even if it only forms a lower high.
They want the market to trade up strongly, similar to the March 31 gap down.
The bears see the last 2 days simply as a pullback.
They want a retest of the March 13 low and a strong breakout below.
How the market closes today will tell us a lot moving forward.
Trump will talk later in the day.
