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Over the last 19 trading day the SPX has been up 17 of those days with only 2 down days in that sequence. Today I wrote a program so that I could backtest this condition and it has only occurred 3 times in the last 50 years including today. For the backtest the trade conditions I tested were taking a short after this sequence and covering the short when the SPX closed back below the 10 day SMA. See attached image.  I may record a Youtube Video on this later tonight.  

Anyway short term the market is quite stretched, so a reversion to mean pullback/consolidation is probably overdue considering the rarity of the condition

the attached image shows the SPX now along with the trade history

Matt

Providing high quality market analysis with an emphasis on technicals education since 2003.

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