Monday’s Strong Selling & New Lows Triggered This Historically Bullish Setup

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.

SPX big drop to a low clos on a Monday has led to consistent bounces during uptrends.

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.

Want research like this delivered directly to your inbox on a timely basis? Sign up for the Quantifiable Edges Email List.