Today SPX and NDX produced the third gap in their waves. The theory says that at least the last one should be closed. A closure of all three would not be a surprise either.
The gaps are shown on the 4hr chart as they are not visible on the daily. After the third gap appears, it is quite normal if a stock continues to rally for a few days and then suddenly falls, forming a topping candle. Stay alert.
For reference – the chart from October 12, 2020. Last year by the end of October, SPX closed all three gaps.
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