Last 6 Days Are Rare For SPYs
- Posted by JC Parets
- on November 14th, 2012
I thought this was interesting. It comes to us from the good folks at Sentiment Trader:
“This is the 7th time in the history of the S&P 500 tracking fund, SPY, that it closed in the bottom 40% of its intraday range (high minus low) for six days in a row. After all 6 prior instances, it rallied over the next two days, averaging +1.3%. If we broaden it to closing in the bottom 50% of its range, then there were 11 instances, and it rallied over the next two days 10 of those 11 times, averaging +1.1%. The edge dissipated after two days.
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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