from Quantifiable Edge after yesterday:

Many traders view days like today as a positive. The fact that the market overcame a gap down and was able to close positive and near its highs is interpreted as a sign of strength. I’ve looked at days similar to this in the past and found that most often they are actually followed by short-term market weakness. Below is a study from the 5/27/09 Subscriber Letter that looks at situations like Monday’s. I have updated the stats so they are current.

This study suggests a solid downside edge over the next 1-2 days. Another notable from today was not only that the market put in a reversal off the gap down, but that it closed at a 10-day high. I decided to use that as a filter to see if it had a substantial impact on the results.