Today’s movement will largely be due to the market’s reaction to the Fed. But I thought I would share a study that triggered yesterday that would perhaps have a bit more influence on a non-news day. It looks at days like Tuesday where the market gaps higher, never fills, and moves higher from open to close without making a higher high.
Implications here appear somewhat bearish, with most of the damage occurring on day 1. Traders may want to keep this pattern in mind for the future.