Wednesday, July 8, 2009

Evening Summary: Short Term buys trigger

As noted last night, there were several short term buys triggered that argued for a higher close today. The end result was a mixed finish, but still an impressive rally off the lows. I noted earlier today that there were likely to be a host of buys that would trigger, but ONLY if we closed much lower. Although some of these signals did not trigger as a result of the late day rally, there were enough to give us a positive bias for the very short term.
  • Short Term RSI based buy argues for a higher close within the next 3 days with a 79% historical odd.
  • Similarly, when the VIX’s RSI(5) has crossed above 75, the S&P has closed higher within 5 days 78% of the time.
  • Kangaroo Tails galore (Potential Reversal candle) - Have a look at the chart below


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