Tuesday, August 12, 2008

A Look At Consecutive Up Days Over The Last Couple Of Months

The market made nice gains for the second day in a row today. Below is a recent chart of the S&P 500. Every time there were at least 2 up days in a row a purple dot appears.

In most cases over the last 2+ months 2 up days has quickly led to a selloff. The most the S&P gained on any 3rd day of this period was slightly over 2 points. A strong move higher could be a sign of a change in character for the market. Tuesday’s action may be worth noting. It could answer the question as to whether rallies will continue to be sold or whether they can start to accelerate their gains.


Anonymous said...

I agree. With the S&P 500 knocking on the 200-week moving average and the short selling restrictions are removed today. The financials will be key.

Trader Kevin said...

Nice, down 20 points over two days Tuesday and Wednesday, then another two-day rally and another failure today.