Daily Market Brief

Market of the Gaps

shaneBack on April 4th, with a large gap higher, markets looked to break out above 1,900 $SPX but failed and reversed lower. It took 5 weeks to get back to that level, but getting there was not smooth, far from it. Looking like a large megaphone pattern $SPX is now near the top of the range following a 2 week period of very low volume. Yet a closer look at the chart of the $SPX shows a market of the unfilled gaps. So many gaps indeed that they start rivaling the gaps in Shane McGowan’s teeth. What’s it all mean? Well, as Art Cashin is known to say: All gaps get filled sooner or later, if ever:

SPX gaps

But I hear Shane got new teeth and his gaps are filled, so maybe the market will follow suit. In this clip at least the gaps are still there:

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