The market did create a narrow range formation during the day session; however, the overnight market created a large down sloping range. Not only did the market not close the gap, it couldn't even close a small percentage of the gap. Watch for a breakout of this range.
The market is currently resting in a small consolidation range created in late July.
Fading the test of the 1.5 standard deviation lines on the $TICK chart only works when the market is stuck in a narrow range. Notice how the market started making lower lows and highs on these test as the bond market closed for the day. The market then close in the bottom portion of its daily range.
Charles
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