Tuesday, March 6, 2012

Does Turnaround Tuesday Apply to Shocking Gaps Down

Look like the SPY is going to open down more than it has dropped any single day so far in 2012.  This can be startling to market participants.  Many may be caught flatfooted.  Of course Tuesday is the #1 day to see a Turnaround.  But does it apply when the market gets a shock at the open?  I ran the test below to see.

It does not appear Tuesday give us a hig probability play.

I also ran the test on all days using a 20-day requirement instead of 10.  Similar non-edge.  Should be an interesting day...

1 comment:

eminiglobex said...

Nice analysis Rob. Any view on this, suggests possible reversal http://eminiglobex.blogspot.com/2012/03/2-consecutive-unfilled-down-gaps.html