On Friday, the QQQ met the criteria for the IDMM-HP. It reached the MS1 Level down in early trading. This fast move is similar to the fast move down on September 3, 2020. The similarities include coming off an ‘Up Day’, opening in the lower range of the previous day, and breaking the low of the previous day. This pattern may be an indication that a ‘Fast Move’ is tradable. The QQQ continued lower and reached the MS2 Level in mid-afternoon trading. It rallied into the close to close above the MS2 Level.
The DIA and SPY met the levels but conditions were not of the HP model. This research is regarding the ‘HP Model’ and ETFs is relatively new and a work in progress. We will be sharing our findings regarding this research in the coming weeks/months. The SPY met the MS1 and MS2 Levels and closed above the MS1 Level. The DIA met the MS1 Level, but did reach the MS2 Level and closed above the MS1 Level.
