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To: zonder who wrote (40439)	10/16/2002 10:20:32 AM
From: dennis michael patterson	Read Replies (1) \| Respond to of 52237

Induction is not a theory. QED

To: zonder who wrote (40439)	10/16/2002 10:23:35 AM
From: Paul Shread	Read Replies (1) \| Respond to of 52237

There is no reason they should always be filled. There's one on the Dow from December 1974 that will only get filled if Prechter is right. -g In the case of a rally that occurs mainly on gaps, then it raises the question of shorts being manipulated to cover. We may have some of that here in the last few days. Today's Nasdaq/NDX opening is ugly, BTW. If we can't recover 1259.87/933.28 today, that would technically call for a full retest of the lows (island reversal).

To: zonder who wrote (40439)	10/16/2002 11:32:02 AM
From: Casaubon	Read Replies (1) \| Respond to of 52237

It's very rare that a business model changes so radically that the price exhibits a discontinuous function. A gap represents price discontinuity. Most business growth occurs steadily over large periods of time. Thus gappy price action, in the short term, is a manifestation of emotional trading, rather than anything fundamental to the actual business results. When the emotional price action ebbs, there is a great tendency for the price action to return to the starting point of the emotional burst of activity. Thus, the gap fills.