Much of the edge here is realized within the 1st 2 days. If the market is going to act on this signal and flounder it will often do so rather quickly.
Wednesday, October 12, 2011
What Tuesday's Tight Range Implies
I’m starting to see a number of indications that the market is ripe for a pullback. One indication I noticed yesterday that will often suggest a pullback was the extremely tight range. Tight range can be a sign of indecision. When it occurs with the market extended upwards it can also imply the bulls are running out of gas and likely to step back for at least a short time. The study below demonstrates this concept.
Much of the edge here is realized within the 1st 2 days. If the market is going to act on this signal and flounder it will often do so rather quickly.
Much of the edge here is realized within the 1st 2 days. If the market is going to act on this signal and flounder it will often do so rather quickly.
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