Last night the Quantifinder identified a study that looked at relatively strong drops from highs when the market was in a long-term uptrend. That study last appeared in the 1/19/10 Subscriber Letter. I’ve updated the results table below:
This isn’t the most high-powered edge we’ve seen but it does provided a subtle hint that there may be a bearish edge present over the next few days. I also filtered the results a few different ways, such as using a 50-day high or a 200-day high. No matter how I sliced it results remained fairly similar to these.