robin hood - tuesday, page-5

Gap Watch:

SPY is the tracking ETF for the SP500.

In the last 100 days there are three unfilled gaps. Bears will have their eyes on the break-away biggie which occurred on 11 October. That's about 10% below the current level - good enough to fit the usual definition of a "correction".

The last time we had a correction of more than 10% in the American market was in the Northern Hemisphere Summer of 2011. Remember that? It hurt. We're now about 2 1/2 years since the end of the last correction. The average time between 10% corrections is about 1 1/2 years. Like all averages, that can be misleading. 1990-1997 went without a 10% correction.

But that big gap down there in October must look juicy.

The Sirens are singing.

Redbacka