The technicians will tell you that when the stock came down from $3, all the gaps below it filled.
I once had a discussion with a very knowledgeable technician who insisted that their is no time frame associated with a gap, and that's true to the up, or down side. A company that reached a peak price of $40, but gaped down to $35 before slowly falling back to the $5 trading range still has a gap at $40 which the technician believes will fill some day, even if the gap was year's ago.
Most people are only concerned about gaps to the upside, and I suspect the MM's will fill that $.435 gap on Tuesday, probably because it's close enough that they can. People work with MM's to fill gaps by simply selling with market orders, and some people just don't realize how vulnerable they are to MM's games when they buy, or sell with market orders. Much the same can be said for stop loss orders placed anywhere near the range the shares are selling at.
It only takes an instant, if an MM sees no bidder above your stop loss to match your order with, in an instant the price can drop to your stop loss, the low of the day is hit, and the very next transaction is back up where it was before your shares were taken.
I frankly learned that the same thing applies to covered calls. I had always thought that when calls were in the money, but had substantial time remaining, they wouldn't be taken. I learned otherwise when shares were taken from my account with months left in the call. I hadn't intended to sell the share, I had planned to buy back the calls at a time closer to expiration, but I never had the chance, I wrote the calls when they were not in the money. I was fortunate, the stock fell below my strike price and I repurchased the stock, so I made a little, but that was never the intention, but I learned a lesson, but it fortunately wasn't costly.
Gary
