Exploiting the edge from historical market patterns

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Weaker on an Up Day: What Next?

Posted on June 29, 2009

Kudos to Rennie at Market Tells for pointing out that today's stock market was weaker than Friday despite the rise in the level of the large cap indexes. According to the data that I keep, which tracks all NYSE, NASDAQ, and ASE stocks, we made fewer 20-day highs today than on Friday.So what happens after a weak up day in the market? I went back to late 2002 (when I first began collecting the 20-day high/low data) and looked at all cases in which SPY closed up on the day, but fewer stocks than the day previous made fresh 20-day highs.Three days after the weak up day, SPY averaged a loss of -....

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highs , lows , new lows