I've been closely monitoring for some time reaction from indices to big gaps at the open.
Almost everytime there's a big gap-up you'll see some follow through and after a couple of hours of rally the HOD are reached and NEVER touched again.
After that a retracement begins that usually last for 3-4 hours and it can drive the index underwater.
Underwater or not, 1-2 hours before EOD, index rises again although not back to previous highs.
This is a pattern that I notice some time ago and I saw it reoccurring anytime there was a big opening gap.
For example DIA fut is up 50 points right now.
I would expect it to rally up to 80 points, then retrace and fill the gap, giving back almost all gains. At the LOD, the index turns around and near session-end it rallies to close up 10-20 points.
Anyone noticing this and taking advantage?
Almost everytime there's a big gap-up you'll see some follow through and after a couple of hours of rally the HOD are reached and NEVER touched again.
After that a retracement begins that usually last for 3-4 hours and it can drive the index underwater.
Underwater or not, 1-2 hours before EOD, index rises again although not back to previous highs.
This is a pattern that I notice some time ago and I saw it reoccurring anytime there was a big opening gap.
For example DIA fut is up 50 points right now.
I would expect it to rally up to 80 points, then retrace and fill the gap, giving back almost all gains. At the LOD, the index turns around and near session-end it rallies to close up 10-20 points.
Anyone noticing this and taking advantage?
