I use the Spider (SPY) as the proxy for the SPX. Gaps can't be forseen. Got nailed this morning. $127.76 to $129.35 with the flick of a wrist. Attached is a chart depicting (3) unfilled gaps. Anyone want to discuss unfilled gaps?
Allright, to start things off, I consider the intra-day low of the last day of the year as a focal point. A peg. In this instance, it was $125.33. That price point was pierced March 16th. Coupled with with a rising ATR (my definition of volatility). I became loosely bearish, with that unfilled gap on the chart as a tenative target. I say loosely since the number of new 52 lows is still behaving itself. Can YOU think of an unfilled gap on any index that remained unfilled?