Assessing Market Action With Indicators And History
Wednesday, January 14, 2009
Weak Bounce Not Encouraging
After selling off hard on Friday and Monday the S&P put in a weak bounce on Tuesday. We've seen this pattern before and it has historically led to more selling. An updated table from the previous study is below:
In this blog I will be examining market action and quantifying my findings. Using sentiment, breadth, price and volume indicators - both standard and customized - I will try and uncover short-term edges which could be taken advantage of by market participants. I will frequently add opinion to these studies and may sometimes post opinions without quantifiable research behind them.
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I have traded professionally since 2001. From January 2003 through February 2007 my bi-weekly column "Rob Hanna's Putting It All Together" appeared on TradingMarkets.com. I have been conducting quantitative research and designing trading systems - mostly focused on short-term edges since 2004.