As technicians and chartists, we know the adage that Gaps usually get filled. I have stated in the past (maybe not on this forum) that gaps are more likely to be filled in individual stocks as opposed to indices or derivatives (ETF’s, options, etc.) My experience is that with the exception of takeover deals and bankruptcies, most gaps do eventually get filled in individual stocks. The current stock market indicies present an immediate case that should be quite interesting. Most indicies (see SPX chart below) gapped down dramatically last Thursday morning on the market opening. Although we are going to have an up gap this morning I don’t expect last week’s gap to be completely filled. Not just because it is an index and not an individual stock, but because last Thursday’s down gap was also correcting and filling the previous up gap from the week before. I believe today’s opening gap will prove an opportunity to sell and go short the major market averages like the SPX. Whether a drop turns out to be the start of a major correction or just a modest pullback before going higher and eventually filling the gap, I am not sure. Either way, I believe a move to the downside is a tradeable play at this time.