All three market-based ETFs had ‘Fast Moves’ off the Open. The SPY and DIA resulted in Intra-Day Reversals. The QQQ managed to extend to the ML2 Level and after a rather deep pullback returned to that level.
The QQQ reached the MS1 Level at 305.55 in the first 30 minutes of trading. ‘Fast Move’s often come from ‘False Moves’, as they say. Weak stocks do not tend to pull back all that much. The QQQ rallied after spending just a few minutes below the MS1 Level. It reached the Upside Limit at 307.37 and went on to become an Intra-Day Reversal by reaching the ML1 at 307.97 around 1:30 PM. The QQQ closed just above the ML1 Level.
The DIA reached the ML1 at 301.07 just after 10 AM. The Downside Limit was 299.48. The DIA pulled back slightly, but not to the Open of the day. The DIA reached the ML2 at 302.13 around noon and closed above that level.
The SPY did not reach any levels during Tuesday’s trading session. There was a pattern present, into which I am looking into its historical significance. This pattern has presented itself a few times over the past 6 months and it has been successful at determining the daily direction. I will investigate this further and will present my findings regarding this pattern in the future.
The DIA reached the MS1 Level down at 300.74 around 1 PM. The Upside Limit was 302.29. The DIA closed above the MS1 Level, but below the Open of the day.
The SPY reached the MS1 Level at 367.72 in the last 15 minutes of trading. When a level is reached so late in the trading day, it is unlikely that you get a move to an extended level without a ‘news-related’ move. The Upside Limit was 369.65, a move to this level this late is not likely unless driven by news.
The QQQ did not reach any levels during Monday’s trading session.
The DIA and SPY both reached the ML1 Levels between 10 and 11 AM. The SPY ML1 was at 368.60 with a Downside Limit of 366.68. The DIA’s ML1 was at 301.84 with a Downside Limit of 300.19. Both ETFs had solid moves that were not ‘Fast’ in terms of time. Both also did not pull back all that much from the High/ML1 Level. The strongest markets do not tend to pull back all that much. Both the SPY and DIA closed above the ML1 Level.
The QQQ did not meet the IDMM-HP criteria. However, it did meet the ML1 Level at 305.58. Because this move was not part of the IDMM-HP criteria, the likelihood of a close above the ML1 was not as great as the IDMM-HP scenario. The QQQ closed above the ML1 Level.
The QQQ was an Intra-Day Reversal on Wednesday. Unless there was an increase in volatility, back-to-back Intra-Day Reversals were unlikely. The QQQ reached the MLS1 at 305.71, around 11 AM. The ETF was then range-bound for the remainder of the afternoon. As it traded between the ML1 and the Downside Limit, closing just above the Open.
The SPY reached the ML1 at 368.03 shortly after 3 PM. It’s not likely, to get a move to an extended level before the end of the day. Barring, a news-related move. The SPY then retreated to the Downside Limit at 366.00 and closed just below the Open of the day.
The DIA did not reach any IDMM-HP levels during Thursday’s trading session.
The QQQ reached the MS1 Level at 300.47 within the first 15 minutes of trading. As mentioned many times, this should be considered a ‘Fast Move’. Fast moves tend to be the most dangerous for a directional trade, as they can oftentimes be ‘False Moves’. Once the QQQ reached the Upside Limit, the likelihood of a close below MS1 diminished considerably. The QQQ then became an Intra-Day Reversal after reaching the ML1 Level at 303.97. Back-to-back Intra-Day Reversals are ‘Rare’. Increased volatility could create a back-to-back reversal.
The DIA and SPY did not reach any IDMM-HP levels during Wednesday’s trading session.
The SPY and QQQ reached the MS1 Level down around 10:15 AM. Both ETFs moved considerably lower rather quickly. The QQQ’s ‘Fast Move’ reached the MS2(296.50) and proceeded to the MS3(295.10) Level right around 10:30 AM. The QQQ rallied and closed just above the Open and all levels. The SPY’s ‘Fast Move’ reached the MS2(360.37) and came within .03 of the MS3 Level(359.14) just before 10:30 AM. The SPY rallied and closed just below the Open and above the MS1 Level.
The DIA did not reach any levels from the IDMM-HP criteria during today’s trading session.