- Gap 1 = Breakaway Gap
- Gap 2 = Continuation Gap
- Gap 3 = Exhaustion Gap
We'll see, in time, if today's (Wednesday's) gap on the TF is a Continuation Gap. If so, then it has a long way to, ultimately, run before it hits the third type...essentially another 100 points, or so, to around 950...although, not likely straight up! I would note that the Breakaway Gap (which began the current uptrend) remains unfilled.
Since the formation on the 60 min (market hours only) chart below resembles that of an inverted Head & Shoulders, this target could be actualized...the timing, however, is unknown.
Price could, potentially, simply continue rising along the upper edge of the channel (shown on the 60 min market hours only chart below) to defy any overbought conditions. Or, it could zig-zag upwards within the channel to reach 950-970 by the end of February 2013. That would tie in with the date by which Congress will have to reach an agreement on the rest of the "Fiscal Cliff" issues, as well as raise the "Debt Ceiling Limit."