This One Chart Shows Why the Rally Isn’t Over

Stocks could explode higher in the next few weeks. Here’s why…

This story was originally published here.

I’ve seen the rising levels of disbelief and skepticism in the current market rally.

But I think it will keep going for longer than many expect.

Below is an updated version of the chart I shared with my Total Wealth Insider readers weeks ago.

As you can tell from this chart of the S&P 500 Index, there’s a huge gap — an open space in the pricing from one session to another — about 70 points wide between Friday, February 21, and Monday, February 24.

The S&P 500 Moves Closer to Its February Gap

I’ve seen the rising levels of disbelief and skepticism in the current market rally. But I think it will keep going for longer than many expect.
(Source: TradingView.com)

The point of the chart goes back to what I was taught by old-time traders, back in my days as a financial journalist: “Gaps are made to be filled.”

The idea is that stocks tend to be drawn to these gaps like a magnet.

It doesn’t always happen that way, though. Nor does it have to happen quickly, as the current market rally would imply.

But I’ve seen stocks that I own unexpectedly tear higher and (not coincidentally) fill chart gaps created months or years earlier…

Editor's Note: To keep reading, click here.

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