Charting is a really arcane type of market analysis and, for the most part, pretty useless as a predictive tool. At best, it should be attempted using a very, very thick pen (thick mouse pointer these days). Still, there is ONE basic principle that has proven pretty accurate over many years - in my experience, anyhow: gaps get filled.
To this end, here is a daily chart of Dow Jones Industrials. The gaps that have been formed on the upside are at 28500, 23700, 21400, 19100 and remain unfilled (blue arrows). The red arrows show gaps that were formed on the downside and have now been filled as the market rose. A similar pattern can be observed at S&P 500 at 3390, 2870, 2530 and 2300.
I'm posting this as a companion visual aid to my previous post (Jan. 13, 2021) on Jeremy Grantham's warning about the current bubble. Good luck!
PS If you really want to go gap hunting, take a look at Tesla... aaaaaaallll the way down 😆😆
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