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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 685.33+1.1%4:00 PM EST

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To: Casaubon who wrote (56535)7/13/2000 10:57:32 PM
From: bobby beara  Read Replies (2) of 99985
 
here is my attempt: exhaustion gap, the last buyers who have been hesitating to buy or the last sellers who have been holding out to sell, in a fit of emotion throw in the towel and do the deed.

the exhaustion gap comes in wave five, breakaway gaps come in wave one and continuation gaps come in wave 3.

the gaps off the may low in nasdaq were breakaway gaps,

exhaustion gaps are only discernable in retrospect, but they usually get filled quickly and price breaks down from there.

b
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