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?
I will have too admit that I have not been taking advantage of the happening, but I have noticed it also. The thing that concerns me this time is a large spike could put most of the indexes above their down channell top trend lines. If this happens,,,,, it could generate quite a bit of buying???? Just a thought....