The S&P500 ended Friday’s session with a gain of over 1% despite
Update: Max intraday gain added to table
S&P futures opened up 1% on Friday.
The 14-day relative strength index for the Nasdaq100
Correction: Study below involves ‘up volume’ average, not down volume as originally posted.
The 20-day average of
It’s been years since we last saw three consecutive 1% down days for the S&P500.
The S&P500 fell to an intraday low of 1912.84 this morning, representing a 3% drawdown since the end of September. This is right around the average drawdown experienced during any random month and below the 5% average drawdown in October after a down September.
One of my ongoing research projects attempts to improve upon the standard NYSE TICK indicator. TICK tracks the net difference between the number of NYSE issues ticking higher and ticking lower at a given moment, and it’s one of the most widely used indicators among short-term traders. But a session like Monday reveals its shortcomings. The charts below show the intraday S&P500 chart (top) and the NYSE TICK indicator (bottom) in blue overlaid with our new Leading TICK indicator in red.
I’ve written previously about the bullish implications of an up September, but with one session left in the month, the S&P is still down a little over 1%. Barring a big rally on Tuesday, we’re looking at our first down September in a few years.