Tuesday, March 17, 2009

When SPY Gaps Up 1% And Closes Negative

What stood out to me about Monday was the fact that the market gapped higher by such a large amount and failed to close positive on the day. Below I look at other times the SPY gapped up 1% and finished negative.



While instances are a bit low, additional downside follow through was often seen over the next 1-3 days.
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3 comments:

  1. AnonymousMarch 17, 2009 at 3:46 PM

    I think this bear market dead cat bounce is over. I think that those who think that this is a significant bear market rally or a 'stealth bull market' beginning (ho ho), are wrong.

    A bear market rally is overdue but this is not it.

    The fact that the talking numptyheads (good Scottish word) think that this is a rally is evidence that it is not.

    Good analysis as always Rob.

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  2. AMITMarch 18, 2009 at 4:01 AM

    Market ups n down is still going on.

    Invitation letter

    ReplyDelete
  3. AnonymousMarch 19, 2009 at 4:06 AM

    Well looks like I am wrong so far. Still think that the medium term outlook is lower.

    Great analysis Rob.

    ReplyDelete