The market MUST rally today and fill the gap. As of right now, a little before 1pm, I think it’s likely. It hasn’t fallen apart yet after the abysmal Non-Farm Payroll release. A completed island reversal would be extraordinarily bad, as it would occur right at resistance, and would open the door to the formation of the potential right shoulder of a head & shoulder top. I think a rally into the close is likely, as I don’t think the market has topped out yet. the next 3 hours are make or break, literally, for the market. You can see the “island reversal” in the chart below. It’s created after a gap up like the green candle did from yesterday, then a gap down open below the intraday low like the red candle did today. It creates the so-called “island top”, an isolated candle that signifies a climax in buying power. This is one of the strongest patterns in Japanese candlestick analysis. It is very reliable. We must fill the gap this afternoon. Prices must be accepted in yesterday’s range or else the topping pattern will be too great for chartests to ignore (even fundamental guys give credence to the island reversal).