Gaps

There's an old saying on Wall Street: gaps want to be filled.

No, it's not sexual or anything like that.  It refers to when the market gaps up or gaps down.  The market then "wants" to trade within the space of the gap.

I bring this up because the market has gapped down recently, but there's no sign of the gaps being filled.

The market gapped down from June 9th to June 10th, and then again from the 10th to the 13th.  (The 11th and 12th were the weekend, so those days aren't on the chart.)  That's what a gap down is: white space between the bottom of one candlestick and the top of the next one.

I don't know what to make of this.  I know the Fed is driving the price action right now, but the 75-basis-point hike wasn't exactly a surprise, so one would expect the conventional wisdom--that the gap would be filled in a later trading session--to still be in play.

The only thing I know is that the ruble has strengthened against all major currencies and gold, so the ruble was the place to have your money these last few months.  Of course, the sanctions mean we Americans aren't allowed to invest in Russian stuff, so no gains for us.

We're obviously in bear market territory.  That's been the case for a while now.  The only question is where it will bottom out.  I fear we've got a ways to fall yet.