First Negative Breadth Day of the Week?
By
Rennie on Friday, November 6th, 2009 at 3:40 pm
S&P500 going for a fifth consecutive day of gains, but note that breadth is setting up for a negative finish. Looking back at the last thirty instances in which the S&P rallied three days on positive breadth and then closed higher again on negative breadth, the S&P posted a subsequently lower close within the next two days 77% of the time. That’s not significantly better than the 59% at-any-time odds for a lower S&P 1-2 trading days later, but it’s close. Along with the ‘low volume rally’ setup discussed last night, it appears that odds continue to favor short-term weakness.
First Negative Breadth Day of the Week?
By Rennie on Friday, November 6th, 2009 at 3:40 pmS&P500 going for a fifth consecutive day of gains, but note that breadth is setting up for a negative finish. Looking back at the last thirty instances in which the S&P rallied three days on positive breadth and then closed higher again on negative breadth, the S&P posted a subsequently lower close within the next two days 77% of the time. That’s not significantly better than the 59% at-any-time odds for a lower S&P 1-2 trading days later, but it’s close. Along with the ‘low volume rally’ setup discussed last night, it appears that odds continue to favor short-term weakness.