To get a sizable number of occurrences I had to lower the % gain to 2%:
Indications are for weakness in the 5-10 days following such occurrences. Below is a table that appeared in last night’s Subscriber Letter which looks at gains of 3% accompanied by the lowest volume in 5 days:
The larger % gains showed even worse performance.
As I type this morning the Nasdaq weakness is playing out. The Dow and S&P remain higher though. NYSE volume was also fairly unimpressive on yesterday’s rally. I’d be wary of further gains on low volume. I’d also continue to watch volume for clues at a time when price action is incredibly volatile.