Wow guys, that is nuts! Something I was thinking about today too. Most of the "strength" is making a small monthly OR, while many of the products that have had a tougher time, (like the XHB) are making wider OR's. Nothing technical here, just an observation in the context of February as a time-frame.
Some mean reversion trader or firm just got their ass handed to them on the close. TF/NQ spread just blew out.
Here is the chart. Someone thought they could sell the strength in the Russell and buy the weakness in the nasdaq going into the close. Mean reversion gone bad.
Looking at my charts, how do you guys handle new weeks not coinciding with new months, etc. For example, SINA's weekly OR was established 2 days ago, but a new month starts today, and overlaps exists. I am guessing since monthly wins out since its a longer timeframe, and represents more of a macro S/R level. But I guess I would be interested in hearing peoples views on overlaps. Too me, it seems like a tight weekly, and a tight monthly, is ripe for a BO. And Perhaps any failure of a weekly A down, that happens to overlaps with a monthly A up, is bullish. And also, any monthly and weekly OR that ARENT that close to each other, could mean the stock is "overextended" (yeah, I know Fisher has said, "how high is too high" but could mean wait until the lines readjust themselves, etc. (For example, I am eyeballing ILMN.. huge gap a few days ago, slow drift, and tight weekly/monthly OR's.. A move either way, and people will be trapped, and a move is likely...)