when price gets too close

    ES futures

    Posted by matt on 14th of Jul 2022 at 12:58 pm

    when price gets too close to a gap on the index, it's analogous to placing too magnets very close together, no matter how strong you are they will snap together

    the gap significance goes hand in hand with those NYSE TICK spikes (TICK spiking over 1000 to 1500 or below -1000 to -1500).  You tend to get those huge spikes in the NYSE TICK above 1000 or 1500 or the inverse on big gaps and those create important price and psychological support/resistance areas where a LOT of volume and TICKS trades - creates important price pivot zones - NYSE TICK spikes tend to occur in those gaps

    speaking of the NYSE TICK

    Posted by matt on 14th of Jul 2022 at 01:09 pm

    speaking of the NYSE TICK here's that 1 min SPX chart - notice the bounce stalled at the big TICK spike at 3770, which occurred on the gap from 6/15 at the market open

    obviously we had a new NYSE tick generated from the big gap down when the NYSE spiked to -1900 - again these tend to get generated on this big gap ups or downs, not always sometimes you get one intra day but most occur at gaps

    And +1000 -1000 tick is

    Posted by brophy on 14th of Jul 2022 at 01:23 pm

    And +1000 -1000 tick is a great place to take an opposite position if you're short term guy.


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