Gap Up, Follow through Down

Richard Moglen
Richard Moglen

Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue

March 30, 2026
13 min read
Market Trend Status
Trend: 4 of 4 DOWN
✗ 10 EMA ✗ 21 EMA ✗ 50 SMA ✗ 200 SMA

Market Action

Gap up open, then steady continued selling making new lows. We are “oversold” but can always get “oversold-er” especially below the 200sma. Overnight exposure is risky in either direction in a weak volatile market.

I do have on the watchlist the TQQQ for a potential oversold bounce day-trade. I’m studying this setup and would do it with small size and not risking more than 0.5% of my account. Cash is king especially overnight. We are in a downtrend.

We will get some vicious bounces up.

Watch for news reversals as the iran conflict and oil are the dominant fundamental factors.

Don’t get too negative. Use this time to study, build your system and be ready for the awesome opportunities on the other side of this correction.

QQQ
Gap up and fade, new lows. Getting more short term stretched
QQQ chart
IWM
Gap up and break down below the 200sma
IWM chart
IBIT
Below the MAs, Sold after the gap up. Held above yesterday’s lows
IBIT chart
USO
We are watching for meaningful news from the conflict that causes a large downside reversal
USO chart

Current View: Correction

Groups/Sectors

Theme Tracker
Theme Tracker
Ranks
Ranks
DV Leaders Heatmap
DV Leaders Heatmap
S&P Heatmap
S&P Heatmap

Leadership Stocks & Analysis

TSLA
Downtrend
TSLA chart
META
No progress lower. Inside day with a decent close. Stretched below mas
META chart
MSFT
Downtrend
MSFT chart
AAPL
Close below the 200
AAPL chart
GOOG
Trending lower
GOOG chart
AMZN
Inside day, poor close after the gap up
AMZN chart
NVDA
Fresh lows
NVDA chart
SNDK
Rejected at the 21ema, close below the 50
SNDK chart
MU
Sharp break lower
MU chart
BE
Reconfirmation lower
BE chart
PL
Break lower looking to fill the gap
PL chart
XOM
Uptrend fade off highs
XOM chart
GEV
Break below the 21ema
GEV chart
LITE
Downside reversal, close below the 21ema
LITE chart
AAOI
Break below the 21ema
AAOI chart
FSLY
Testing the 21ema
FSLY chart
CRCL
Still leaking lower
CRCL chart
DOCN
Testing the 21ema
DOCN chart
NXT
Break lower
NXT chart

Key Moves

AA
Gap up
AA chart
LASR
Sharp breakdown
LASR chart

Setups and Watchlist

DHT
Watching for a range breakout or breakdown
DHT chart
DOCN
Watching for a break below the 21ema. One of the last names holding up
DOCN chart
FRO
Watching for a range breakdown below recent lows
FRO chart
RNG
Watching for a break down from the 21ema. Tight day
RNG chart
TNK
Watching for a range breakout
TNK chart
TQQQ
On a large gap down can look for an intraday reversal up for a day trade as we are short term stretched.
TQQQ chart
GEV
On a gap down, an oversold bounce candidate near the 50sma
GEV chart

Watchlist & Themes

Larger Watchlist

DHT DOCN FRO RNG TNK GEV TQQQ

Daily Focus List

TQQQ

Additional Thoughts

Not planning on doing much unless we get a significant gap down and look to be reversing. Less is more in choppy oversold conditions.

The market needs time to work out this selling, even if the correction low is close

Recent Trade Lab Reports

  • Holding and Re-confirmation
    April 9, 2026
    15 min read

  • Gap up above the 50 and 200 SMA
    April 8, 2026
    13 min read

  • Upside Reversal. 2 Week Ceasefire. Market Set to Gap up
    April 7, 2026
    14 min read

  • Market Coiled at Key Levels. Make or Break for the Rally
    April 6, 2026
    13 min read
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