Possible Implications Of SPY Gap & Reverse Patterns The Last Two Days

Thursday saw the market gap up but reverse and close lower. Friday we had the opposite occur, with SPY gapping down but closing higher. It also closed at a new high on Friday, which triggered the study below.

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The numbers here are somewhat bearish, with much of the damage being done by day 2. Traders may want to give this study some consideration when evaluating the market’s prospects over the next day or two.

 

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