Thursday, February 21, 2013

One Pattern Suggesting The Selloff May Have Further To Go

Short-term evidence I am currently looking at is mixed with both bullish and bearish studies triggering.  The study below is one that favors the bearish case.  It examines SPY performance after posting an unfilled gap down from a high level immediately after an unfilled gap up.

Instances are a bit low, but the consistency and magnitude of the moves lower are strong.  I found this study compelling enough to take under consideration.

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