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Gap theory?


I was looking at some daily charts last week looking at all past bear market lows and final tops and noticed that there is an unfilled gap on the Dow 30 on 1/17/1991 at 2600.25 Is it possible for a market to leave this unfilled? W.D. Gann said "sometime in the future the market will trade back at the gap price" well it hasn't of yet. It would be a ruff ride back to 2600...That would put the ES around 315 or so.
On a much shorter term basis, i notice on the 5 min spx cash chart a nice gap between 895-898
quote:
Originally posted by CharterJoe

I was looking at some daily charts last week looking at all past bear market lows and final tops and noticed that there is an unfilled gap on the Dow 30 on 1/17/1991 at 2600.25 Is it possible for a market to leave this unfilled? W.D. Gann said "sometime in the future the market will trade back at the gap price" well it hasn't of yet. It would be a ruff ride back to 2600...That would put the ES around 315 or so.



Joe; Whats your thought about this gap/ BTW good to see you
As far as my experience goes "Gaps" are the strongest magnets in the market and coupled with the concept that price has a memory the gap should be filled.

1. If Washington doesn't get serious about fighting this financial crisis and start throwing some serious money into main street in a hurry, 2600 is a realistic target. Avoiding a complete collapse of the US economy is going to require an immediate injection of hundreds of billions of dollars directly into the main street economy in the next few weeks.

2. If the FCB's do not immediately take whatever action is necessary to stop this uptrend in the Yen and the US Dollar, the Dow is going to continue to collapse. Next stop below this 8000 level is 6000. We can get there in one or two trading sessions. This will not be a good outcome.

3. Dow 2600 is not in anyone's interest.

pt_emini this 2600 level in DOW, is it for DJIA or Emimi $5 DOW??