Monday, August 6, 2012

A Gap Pattern Suggesting A Pullback

I am seeing a real mix of studies right now.  The one below makes a short-term argument for the bears.  It examines the unfilled gap pattern that emerged in the SPY on Friday.   The study was last shown in the 10/28/11 subscriber letter. I ran it again this weekend.

The number of instances is a bit low, but the consistency is strong enough and the statistics lopsided enough that I think it is still worth taking the study under consideration.

1 comment:

greenlander said...

Posted reversal candle on v weak volume. in most indexes near or touching upper bollinger which usually marks reversal. I went short right at close for 2-4 day trade