Thursday, September 10, 2009

Higher Close after Clean Gap Up - Short term negative

[this was suppose to be posted last night, but apparently remained as 'draft' and was never published. *sigh*]
The markets today complied with the expected behavior from yesterday's high probability study. Today's higher close on the S&P followed a 'clean' gap up from yesterday. By 'clean' i mean the close yesterday painted a low that was higher than previous day's high. This has only occurred 10 times since 1990. while not statistically significant, it is notable that in each case, the market was trading lower within three days.


TickerDate/TimeClose3Day-%Chg N1%Chg N2%Chg N3
SPX10/2/1990315.211.00-1.21-0.80-1.18
SPX6/15/1992410.291.00-0.48-1.96-2.27
SPX10/18/1996710.821.00-0.14-0.60-0.50
SPX9/27/20071,531.381.00-0.301.021.00
SPX11/29/20071,469.723.000.780.18-0.47
SPX12/24/20071,496.452.000.08-1.35-1.20
SPX4/3/2009842.501.00-0.83-3.20-2.06
SPX4/13/2009858.731.00-2.01-0.780.77
SPX6/2/2009944.741.00-1.37-0.24-0.49
SPX7/16/2009940.741.00-0.041.101.47
SPX9/9/20091,033.370.000.000.000.0

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