Sharp Drops From Intermediate-Term Highs – A Short Term Bullish Setup

Thursday and Friday saw relatively large selloffs in SPX. After closing at a 50-day high on Wednesday it closed at a 10-day low on Friday. This triggered an interesting study from the Quantifinder that looked at relatively sharp selloffs that made at least 8-day lows. I have updated that study below.

2016-06-13 image1

The stats all suggest an upside edge over the next 1-5 days. Traders may want to keep this in mind when setting their trading bias this week.


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