Wednesday, May 11, 2011

This SPX Pattern is Offering Some Compelling Bullish Evidence

Last night I decided to explore the pattern the SPX has carved out over the last several days. What I noted was that after making a new high it then pulled back for 4 days in a row. That 4 day drop has now been followed by a 3-day rally. At this point the SPX has not managed to overcome the recent highs. So I plugged those observations into a study and found some very compelling results.

While the number of instances was smaller than I would prefer the statistics appear to heavily favor the bull side.

1 comment:

James said...

Nice! Your study even "predicted" the down move today! I got a buy signal at the close today and after seeing your study today, I have even more faith in my model (whith is already up almost 10% this month).

Let's go bulls! :)