Info!! What Happens Afterward Potent Upside Momentum Days Inwards The Stock Market

Monday, nosotros saw Demand--an index of the let out of stocks closing higher upward the volatility envelopes surrounding their short-term moving averages--exceed 190, piece Supply (an index of those closing below their envelopes) was exclusively 19.

Going dorsum to belatedly 2002, when I get-go began collecting these data, we've exclusively had 31 days inward which Demand has exceeded 180. That typically occurs afterward breakout moves, when many stocks display favorable upside momentum.

Interestingly, returns over the subsequent 5 days inward the S&P 500 Index (SPY) accept non been favorable. The average five-day alter next a large upside momentum solar daytime has been -.82% (14 up, 17 down). Nor accept returns been favorable 1-4 days out.

It appears that at that spot has been no short-term bullish border next large upside momentum days, alongside profits taking non uncommon.

Additional Comment vii AM CT - I notice that the fantabulous Market Tells as well as Quantifiable Edges newsletters--both of which characteristic historical trading patterns--arrive at somewhat like conclusions to the above, exactly each of them goes into to a greater extent than depth, alongside additional findings. Hats off to these worthwhile resources.

Note: Demand as well as Supply are proprietary measures; they're updated each morning time prior to the opened upward via Twitter (follow here).

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