What Thursday’s Uninspired Rally Suggests

Thursday’s market action was marked by low volume and a narrow range. Both came in at the lowest levels in over a month, Such uninspired action has often led to pullbacks in the past. Below is a study the Quantifinder identified that illustrates this. It was last published in the 7/20/2009 Subscriber Letter.

The edge isn’t huge but there does appear to be a downside tendency.