Friday, February 5, 2010

Extremely Negative Breadth Days In A Long-Term Uptrend

I looked at yesterday’s selloff a number of different ways last night. The overriding theme suggested this selloff is already getting overdone. Below is one example of a study I ran.



Instances are low, but with 100% winners on days 2, 7, 8, and 9 as well as very strong average trade results over the period I felt it was worth considering.

2 comments:

Toptick said...

Hi Rob,

Have you tried up vol < 10% to get a larger sample? (I'd do it myself but I don't have the best data.)

Thanks!

Unknown said...

Was this a 90% downside day? If so, another one soon has bearish implications and a market top>