Trade the Cycles

Thursday, January 19, 2006

................................Gaps Theory

If gaps don't get filled that can be a bearish or bullish sign, as occurred recently when NEM twice closely approached (daily cycle lows at 48.88 and 48.89) but didn't fill it's downside gap at 48.75, then the recent monster rally occurred.

Reliable lead indicator NEM created an upside gap yesterday a bit below 59 that it failed to fill it yesterday (came close) and today, which is a sign that NEM will probably continue lower tomorrow, from it's late session downtrend on Thursday.

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