Historical Implications of Monday’s Multi-Day Engulfing Pattern

Monday’s action was so extreme that it engulfed the last 2 days.  The Quantifinder identified the below study, which I last looked at in the subscriber letter a little over a year ago.  Results are all up-to-date.

While the immediate 1-3 day reaction has been unreliable, these extreme outside days with poor closes have commonly been followed by upside over the 4-10 day period.