I’ve discussed before the propensity for Tuesday to serve as a day where short-term selloffs reverse. Historically it has outperformed every other day of the week in this regard. Last night I examined SPY performance following at least 5 straight down days going into Tuesday. Those results are below.
Instances are low but the stats are overwhelmingly bullish over the 1st 3 days. Of further note, all 10 instances managed to close above the entry price at some point in the next 3 days. So even when Tuesday failed, it was made up for on Wednesday or Thursday.