$DIA Trading Range for Friday, August 2nd

In premarket right now, the Dow is at the bottom of the implied move that we set up last weekend, just above 398. We gapped below the up gap from Thursday of last week going into Friday, creating an island top. We gapped down underneath the one-hour 200 moving average, all the way to the bottom of the implied move.

The last few times we saw a gap completely to the bottom of the implied move, the momentum followed through in that direction, as observed in SPY and QQQ. Here, however, we are at the bottom of the implied move for the week. It will be interesting to see if we can swing back up and at least get into the gap that has supported us all week.