The last two days we’ve seen opposing reversals. Wednesday the market made a new high but closed down on the day. Thursday it hit a 7-day low before reversing to close up on the day. A reversal off a 7-day high followed by a reversal off a 7-day low would seem a bit unusual. I looked back to 1978 and found out just how unusual it was. Below is what I found.
It’d be dangerous to trade based off of just a sample set of 5, but I was still fairly amazed that there wasn’t a single instance of a profitable close within the next 4 days.