As I said earlier today the gap up yesterday was more a concern than the announcement (short term), but we got a double wammy each with a pronounced effect on the other. I suspected the gap up was an exhaustion gap and this was I beleive confirmed today. This is not a major reversal and those strong enough to hold should see SP back or consolidate, regroup and continue the prevailing trend. With announcements due very soon I think it will happen sooner than later. May touch the 61.8% Fib level at .047 and make a small consolidation there as have the previous rises on the 38.2 and 50 Fib levels, you can see this on the chart below. Great buying opportunity.
Wikipedia: Exhaustion gap signals end of a move. These gaps are associated with a rapid, straight-line advance or decline. A reversal day can easily help to differentiate between the Measuring gap and the Exhaustion gap. When it is formed at the top with heavy volume, there is significant chance that the market is exhausted and prevailing trend is at halt which is ordinarily followed by some other area pattern development. An Exhaustion gap should not be read as a major reversal.
Investopedia explains Exhaustion Gap Many technical analysts consider it a temporary gap. The range in prices gapped by the decrease in demand is expected to be filled once demand and the upward pressure on price are re-ignited.
