Wednesday is a Fed Day. Fed Days have historically shown an upside tendency. I have documented this tendency in great detail over the years. A higher close today would not be the most favorable Fed Day setup. A big reason for this is that it would mark a 20-day high close. Fed Day bullishness has often occurred when a Fed announcement has helped to alleviate market stress. When the market closes at a 20-day high, it typically means there isn’t a lot of worry present. Under these circumstances, the upside inclination has also not been present. This can be seen in the study below.
![](https://quantifiableedges.com/wp-content/uploads/2023/12/2023-12-12-0-1024x719.png)
Neither the stats table nor the profit curve suggest any consistency or tradable edge. As a comparison, here is a profit curve of all Fed Days when SPX did NOT close at a 20-day high the day before.
![](https://quantifiableedges.com/wp-content/uploads/2023/12/2023-12-12-1-1024x698.png)
Many more Fed-based studies can be found here: https://quantifiableedges.com/category/fed-study/
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