Stocks gap into the gaps

Tuesday 22 April 2025

I am of the school of thought that markets like to fill gaps. When large daily moves transpire, the market tends to reverse and then fill the large moves with smaller moves in the same direction.

It is a little disconcerting when this happens, but the resumption of the trend fills the gaps with more gaps!

The Market Ear has more.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.