Tuesday, August 16, 2011

Large Gaps Down After 3 Up Days

This volatility continues this morning with a big gap down.  The study below shows performance for the day following large gaps that occur after 3 consecutive up days.

These stats do not appear encouraging for the bulls.  Below I have listed all instances.

This view isn't any better.  It appears there is some potential for another ugly day. I'd use caution buying today.

1 comment:

J-Trader said...

Thanks for the update, Rob. Your work is always appreciated by this reader. Something I find surprising is that there were only 13 occurrences. I guess I figured this would happen more frequently given all the volatility we've had over the past decade.