That's an impressive upslope for a period covering over 50 years.
Thursday, July 11, 2013
Sometimes Overbought Suggests More Strength
When the market begins to get overbought it will often suggest a pullback is likely. When overbought gets powered through then odds will sometimes shift from a pullback to a continuation of that move. The last two nights I have seen some studies suggesting this scenario. The study below is on that I have showed a few times in the past. All stats are updated.
These results appear to suggest a pretty consistent upside edge over the next 1-3 weeks. In fact, below is a profit curve showing just how consistent it has been over the years using a 10-day exit.