Filling The Gap

Following the low on the chart below there are two large white candles with a gap in between them that occurred between September 18th and 19th. Markets abhor a gap and we have filled that gap yesterday and today. Not only that, the chart pattern that has formed is known as a Cup and Handle formation. That is very bullish and I expect the market to rally soon. With the bailout package expected to be passed before the congressional recess I anticipate a rally to take out the 1260 high. That is how I see it. We will just have to wait and see. Click on chart to enlarge.