Monday’s selloff saw the market close poorly and near its lows for the day. Below is a study that examines weak closes since the March bottom.
I consider this particular study to be environmental. It is indicative of the strength of the rally of the last 7 months and not necessarily an all-weather setup. While I wouldn’t base a trade on this study I do think it will be important to see how it plays out over the next few days. An all out failure to bounce could suggest a change of character for the market.