What Follows Relatively Large Drops From New Highs

Tuesday saw the 1st somewhat sizable drop for the market in a while. And the action triggered the study below, which looks at relatively large drops from intermediate-term highs. I have updated all the stats.

2015-03-04 image1

Over the last 11 years the stats are impressive. And the 3-4 day consistency is strong. Traders may want to take this into consideration when setting their bias over the next few days.



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