Friday, June 4, 2010

What Thursday's Uninspired Rally Suggests

Thursday’s market action was marked by low volume and a narrow range. Both came in at the lowest levels in over a month, Such uninspired action has often led to pullbacks in the past. Below is a study the Quantifinder identified that illustrates this. It was last published in the 7/20/2009 Subscriber Letter.



The edge isn’t huge but there does appear to be a downside tendency.

2 comments:

桂竹桂竹 said...

肯定與支持你!!!加油囉~........................................

y@mp0 said...

after yesterdays rout i got to thinking. i wonder what would have been the result of the study if you modified it to only include instances when the market was also below the 50, 20 and 200 day sma....... very interesting blog thanks i just found it last week