Tuesday has shown strong inclinations to turn around over the years when there has been a pullback leading up to it. But when the pullback has been 2 days old and the market has been in a long-term uptrend, that turnaround inclination has not held true.
Whose fault is that? Not the overnight.
It’s been the day session. Below is a are the results of going long Tuesday morning after a 2-day pullback during an uptrend, and then exiting at the close.
As you can see, the stats show a moderate downside inclination. I also produced a profit curve to see how this has played out over time.
A bit choppy, but it has been headed lower for a long time. Traders may want to be a little cautious about jumping aboard the “Turnaround Tuesday” train today. The market has historically struggled between open and close under similar scenarios.