Nov
12

Institutions Remain Better Sellers, NDX Holding Firm

By on Thursday, November 12th, 2009 at 3:13 pm

Market under pressure Thursday as institutions remain better sellers (TICKscore -27). With the S&P down 1% on the session, it’s noteworthy that the NDX is outperforming significantly, currently off 0.4%. When the S&P500 closes down 1%+, the Nasdaq100 (NDX) typically suffers a similarly large loss. But when the NDX manages to hold its own in the face of a solid down day for the S&P, it suggests limited selling pressure and/or a rotational environment. Typically, the market is trading higher three sessions later. Each of the last thirty instances in which the NDX settled down less than 0.5% (or managed a gain) on a day when the S&P fell over 1% are listed in the table below. Note that in 24 out of 30 cases, or 80% of the time, the S&P closed at a higher level three sessions later, significantly above the 54% at-any-time odds for a higher S&P three days later in the same time frame…

S&P500 Drops 1%+, Nasdaq Down Less than 0.5%
10/26/09… S&P500 -0.1% three days later
06/03/09… S&P500 +0.8% three days later
05/15/09… S&P500 +2.3% three days later
05/11/09… S&P500 -1.8% three days later
04/27/09… S&P500 +1.8% three days later
03/19/09… S&P500 +2.8% three days later
02/20/09… S&P500 -0.7%  three days later
10/29/08… S&P500 +3.9% three days later
10/10/08… S&P500 +1.0% three days later
10/08/08… S&P500 +1.9% three days later
08/12/08… S&P500 +0.7% three days later
07/31/08… S&P500 +1.4% three days later
07/15/08… S&P500 +3.8% three days later
05/23/08… S&P500 +1.6% three days later
06/13/06… S&P500 +2.3% three days later
05/12/05… S&P500 +1.2% three days later
03/09/05… S&P500 -0.0% three days later
04/16/03… S&P500 +3.6% three days later
01/22/03… S&P500 -3.5% three days later
10/09/02… S&P500 +8.3% three days later
09/24/02… S&P500 +1.0% three days later
04/29/02… S&P500 +1.8% three days later
03/06/00… S&P500 +0.8% three days later
02/16/00… S&P500 -2.6% three days later
05/27/99… S&P500 +1.1% three days later
01/14/99… S&P500 +3.7% three days later
07/09/97… S&P500 +1.2% three days later
03/13/97… S&P500 +0.0% three days later
04/10/96… S&P500 +1.4% three days later
02/20/96… S&P500 +2.9% three days later

Copyright Notice

Copyright 2012 Astrikos LLC. This publication is for the benefit of subscribers only and is not to be summarized, reproduced, or rebroadcast in any fashion without our written permission.

Market Tells is on Twitter!


Disclaimer

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.