Monday marked the 6th day in a row that SPX reversed direction on a closing basis. Friday’s bounce off a 20-day low on Thursday did not get any follow through. But bulls should not be too discouraged by this. The study below is from the Quantifinder. It considers similar situations in the past.
The stats certainly appear bullish and the edge seems to occur both right off the bat and after a couple of weeks. Traders may want to keep this in mind over the next few days.
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