An island reversal in MDY

With a gap up on Monday and a gap down on Thursday morning, the S&P 400 MidCap ETF (MDY) has an island reversal working on the 30-minute chart. There were no trades around 127.6, which creates a floating island around 128. Even though this gap is negative, MDY landed right at support from last week’s low. Further weakness would reverse the short-term uptrend.

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Comments

[Richard Johnson]

Re: An Island Reversal In MDY. What are the horizontal dashed blue lines that are on the right side of the two charts? On the MDY price chart there is one of these lines at 128.4 and on the MDY & $SPX chart there is another dashed blue line. I have seen these lines on many charts on the StockCharts web site but I don't recall seeing an explanation of what they represent.

Art's Answer: The blue dotted lines mark the prior day's closing level.