Today's high so far in the GLD at 60.27 completely filled the lowest of three unfilled gap areas left behind in the aftermath of the Amaranth energy sector debacle. The second gap will be filled at 60.99, and the highest of the gaps will be closed at 62.82. For the time being, my work argues that the GLD has enough technical power to fill the second gap in the hours ahead, prior to the "need" for a digestion period.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.