Oct
08

Implications of a White Candlestick

By on Thursday, October 8th, 2009 at 3:27 pm

S&P futures are attempting to post a fifth consecutive session with a close above the open. Should that occur, odds would tilt in favor of a close below today’s settlement within the next few sessions. The table below lists each of the last thirty separate occurrences in which S&P futures initially posted five consecutive white candlesticks…

S&P Futures Post Five White Candlesticks
07/28/09… Lower S&P close one session later
07/16/09… Lower S&P close one session later
04/29/09… Lower S&P close one session later
04/06/09… Lower S&P close one session later
01/05/09… Lower S&P close two sessions later
10/26/07… Lower S&P close two sessions later
05/07/07… Lower S&P close one session later
04/18/07… Lower S&P close one session later
02/20/07… Lower S&P close one session later
02/05/07… Lower S&P close one session later
11/24/06… Lower S&P close one session later
10/25/06… Lower S&P close two sessions later
10/09/06… Lower S&P close two sessions later
09/14/06… No lower S&P close within three days
03/16/06… Lower S&P close two sessions later
01/09/06… Lower S&P close three sessions later
11/22/05… Lower S&P close three sessions later
07/13/05… Lower S&P close three sessions later
05/27/05… Lower S&P close one session later
02/16/05… Lower S&P close one session later
12/14/04… Lower S&P close two sessions later
10/29/04… No lower S&P close within three days
08/02/04… Lower S&P close one session later
05/17/04… No lower S&P close within three days
08/29/03… No lower S&P close within three days
08/20/03… Lower S&P close two sessions later
08/12/03… Lower S&P close one session later
03/21/03… Lower S&P close one session later
01/06/03… Lower S&P close one session later
09/10/02… Lower S&P close one session later

Note that in 26 out of 30 occurrences, or 87% of the time, the S&P posted a subsequently lower close within the next three sessions, significantly above the 68% random chance for a lower S&P close within three days.

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Comments, data and trading signals herein are for informational purposes only and are not recommendations to buy or sell. All information presented is believed to be accurate but is not guaranteed.