I'm sort of laughing because this Monday is as of 3:15 PM a carbon copy of last Monday only with a slightly larger range. In theory these late day reversals should be negative but as I wrote a week ago (int he comments section) to a reader who asked if that day selloff meant anything those rules don't apply when you have premarket magic to make the previous day's bad technical action go away. :)
So in theory this is two Mondays in a row where we had a nasty reversal. Last Tuesday we gapped up 0.8% and went had a 2%+ gain that pushed us right through the 200 day moving average and closed at the highs of the day. I have no idea what happens tomorrow because all old rules mean nothing when someone with a fistful of bucks can make the market dance to its own tune in the 7 and 8 AM hours.
As I type we have fallen back below the 50 day moving average but still sit above the 200 day. While a not so pleasant reversal I wrote a few hours ago we are due for some price correction. The market did an awesome job of stopping out a bevy of my shorts right before it reversed... oh stock market.