These kinds of gaps up are always interesting and telling somewhat. For instance, if the gap was retraced 100%, then you can almost say that the market gave it its best shot but was unable to hang onto the gains at all. And if that happens, it can certainly be viewed as bearish price action.
So we'll see what happens. A 100% retrace of the gap up tends to be bearish here in my opinion. So I would expect that if the market requires much higher prices in wave [c] of Minor 2 up, then the gap will probably remain at least partially open until Minor 2 is complete.
This is similar to the still partially open gap that resides from 1253 - 1259.75. I had figured that that gap would be closed on the recent downturn but its too important for the bullish case so it had to remain open. A close under 1253 on the e-minis would be a bearish event.
But first the market needs to close under tonight's gap up before we can address the open gap from 1253-1259.75. It should be very interesting week to see how price action plays out.
