** CBoT E-Mini Dow Jones Futures 1YMcv1 suggesting the DJI poised to bounce about 100 points at the open
** Indeed, DJI can attempt to end its 4-day losing streak, potentially move to fill Friday's open downside gap.
** DJI action on Fri created an open price gap which ranges from 25401.19 to 25492.69
** This after the index turned down shy of major resistance at its Feb reaction high (25800.35) and 76.4/78.6 pct Fibo retracement zone of the Jan/Feb slide (25848.19/25919.84)
** Action suggests risk that a breakaway gap has kicked off what can be a significant bear phase
** Thus, moving to quickly fill the open gap could negate the breakaway signal, put the index back on track to attack the major resistance
** Failing to fill the gap, breaking Aug 2 trough (25120.07), however, can see pressure mount
** Risk can then build that the choppy Feb/Aug recovery was just a protracted counter-trend bounce in a developing bear (Wave 2 or B Elliott Wave basis)
** Resumption of that trend can be a severe Wave 3 or C down
** Meanwhile, the S&P 500 .SPX has its own pothole to fill, while a Nasdaq internal measure is trying to step over a red line
((terence.gabriel.tr.com@reuters.net terence.gabriel@tr.com 646-223-4122))
