All three market-based ETFs (SPY, QQQ, and DIA) reached the MS1 Level down in the first 15 minutes of trading. These ‘Fast Moves’ were relatively large in terms of distance in ‘price’. The SPY and QQQ both rallied back to the Upward Limit Level. A move to this level decreases the likelihood of a Close below the MS1 Level. The SPY and QQQ both closed above the Open. The DIA rallied off the MS1 level, but never reached the Upward Limit Level. For the most part, the DIA was range-bound and closed below the Open.
We continue our search for opportunities that indicate that a ‘Fast Move’ is tradable. It appears that quite often, the ‘Fast Move’ will move back towards the Open. Does this indicate that a ‘Fast Move’ has a higher potential for an intra-day reversal? Today’s ‘Fast Move’ exceeded the previuos day’s low in all three ETF’s. This has been something we have been looking into as to a possibility to increase the likelihood of a tradable fast move. It appears that as of now, it continues to hold true that ‘trend days’ do not typically pull back all that much. Pull backs to the Open or to the Limit on the opposite side of the Open decreases the likelihood of a close that exceeds the directional level.
