I haven’t been looking at actual signals much lately as the focus of my research has shifted. In any case, the implications of x0x are clear. The only buy signal that can come out of x0x is x00. It’s not terrible to be long here, but anything other than x00 has a negative long term return and volatility is relatively high.
The steroid stimugap is in the green rectangle. The light blue horizontal lines go from yesterday’s high and low, more or less defining the top and bottom of the stimugap sequence.
The later day recovery left a bottoming tail which shows rejection of the lower prices which is good. On the other hand, the bottom of the tail is a convenient target, which suggests it will probably be tested. On a probe back down there, the bottom will probably not hold. If that happens, 328 – 329 becomes more likely, corresponding to the high of Sep 25, the day before the Island reversal gap.
