Many studies identified by the Quantifnder Monday afternoon showed the strong selling and closing lows to be potentially bullish. And Turnaround Tuesday is typically the best day for a bounce to begin. The study below considered the long-term uptrend, intermediate-term low, and strong selling on Monday.

The only instance that did not close higher 4 days later was the one that triggered on 2/5/18. But it did close higher on day 5. In fact the last 18 instances all closed higher 5 days later. The last 5-day loser was in 1981. There are certainly dangers right now, but this suggests a high probability of a bounce in the coming days.

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