So what do you technically inclined folks think about the huge ranges (high to low) and volume being seen in REIT's the last couple of days? IYR is the main ETF. Is an unusually large daily range of movement combined with higher volume a bottoming type of action or does it depend? The last two days rank 2 and 3 in terms of daily % range (relative to price) for IYR in over 2000 trading days of this instrument. Basically 1 in a 1000 type of movement. I have terrible technical skills and am curious about what if anything can be intuited from this type of action.
1) FWIW, highest volume tends to occur at longer-term extremes. 2) Yesterday's large daily price range, to the upside, is more indicative of capitulation of the weak-handed "longs" into stronger hands who can move the market while probing for more shares to buy.....at a longer-term extreme. 3) The large downside move today is slightly indicative of "willing" sellers at higher prices who may want to re-test yesterday's low. 4) Be willing to buy below yesterday's low for a "quick flip".