As in the Nasdaq study, WR7 down – NR7 implications appear bullish.
Another way to look at the last two days would be to ignore the size of the bar on Friday, and rather focus on the high level of volume. This next study does that:
Both studies seem to suggest the same thing. When a substantial selloff (measured in either price or volume) rapidly loses steam, the result is typically a bounce back up.
Also notable is the fact that the CBI hit “8” today. To see recently reported results following moves to 7 or higher, see the June 11th blog.
On the negative side, the VIX didn’t budge, the Put/Call ratio dropped precipitously, and it looks like another possible case of Draggin’ Breadth today.
Lastly, while the studies help to construct a market bias, the biggest mover in the next few days may be the Fed. Right now, that seems to be a wild card that could spark a move in either direction.