SPY gapped up and closed lower Tuesday after leaving an unfilled up gap on Monday. This triggered a simple study that I have examined a number of times over the years in the subscriber letter. The study can be found below.

The numbers here all look solidly bullish, suggesting a potential 1-day upside edge.  Traders may want to keep this in mind today.

Of course if you read the blog regularly, you may realize this is in conflict with a study I showed over the weekend that suggested possible bearish implications through Wednesday.  That’s ok.  Not all evidence will always point in the same direction.  My favorite tool to help establish my bias when examining conflicting evidence is the Aggregator.  In any case, it will be interesting to see how Wednesday plays out, and how that sets up the next few days.

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