I've commented recently on the topic of how what seems visually obvious--the continuation of short-term marketplace trends--is non commonly the obvious, winning trading strategy.
We registered over 2000 20-day lows on Fri across the NYSE, NASDAQ, together with ASE, indicating wide marketplace weakness.
Note, however, that nosotros entirely registered a piddling over 300 fresh 65-day lows.
What that tells us is that, then far, nosotros accept a abrupt reject inwards a rising market.
Going dorsum to slowly 2002, when I outset began compiling these data, nosotros uncovering entirely 23 days inwards which 20-day lows overstep 2000, only 65-day lows are below 1000. Over the next v trading sessions, the S&P 500 Index (SPY) has averaged a ambit of .65% (15 up, 8 down). That compares amongst an average five-day ambit of .10%.
These historical studies tin furnish a useful purpose of context for the trading day. More on that later.
.
No comments:
Post a Comment