Friday marked the 3rd day in a row of hard selling at intermediate-term lows.  The study below shows that such hard selling is rare, and has often been met with a  strong upside reversal.

While instances are low, the stats so far appear impressive.  I will also note that 7 of the 10 instances saw SPX close Day 2 over 2.50% above it’s entry price.  Traders may want to keep this study in mind when setting their trading bias.

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