When you have a very positive day after market being up for many days, lot of time the speculative juices get flowing and you lose situation awareness. Yesterday was one of those days where a gap up got too many excited. As I said in my early morning post such gaps tends to be faded.
It is important to understand why it tends to happen. Market consist of participants with different profit objectives and holding periods. Most short term traders would quickly book a profit of 5 to 105 in just 24 hours. So gap up is used for profit taking.
Besides that market has been going up for some time so more traders are prone to taking profits on extended position.
A minor pullback/consolidation may be the next step for markets.
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