BY
ROB HANNA| MARCH 09, 2011 | 12:43 PM | The market has been stuck in
a trading range for the last couple of weeks, and that range has
tightened even further in the last week. Looking at the SPX
we have now seen 5 closes in a row that have occurred within the
range of the 3/1/11 bar.
Inspired by some gap-related research by Scott Andrews over at
Master the Gapusing a similar setup, I decided to take a more
detailed look at this set of circumstances. What stuck out to
me is that 1) the SPX has been in a long-term uptrend. 2) There was
a sizable 1-day selloff. 3) The bears failed to follow through on
that selloff, yet the bulls have not managed to move the SPX back
out of the range either.
This Pattern Has Frequently Preceded A Pop In The SPX
Posted by epmaruggi on 11th of Mar 2011 at 01:08 am
This Pattern Has Frequently Preceded A Pop In The SPX
Over the last 22 years or so the SPX has burst higher out of this "failed selloff" and consolidation on a consistent basis. But the implications are only bullish for a few short days. After that there does not appear to be a decided edge for either the bulls or the bears.
Wouldn't March 10's move negate
Posted by sethbru on 11th of Mar 2011 at 01:25 am
Wouldn't March 10's move negate this pattern?
Not necessarily
Posted by epmaruggi on 11th of Mar 2011 at 01:47 am
Marchs 10th move would negate
Posted by vimal on 11th of Mar 2011 at 02:48 am
Marchs 10th move would negate this study. Simply because the market is no longer between its high and low of 5 days ago.