Feb
04

Relentless Institutional Selling Ahead of Jobs Report

By on Thursday, February 4th, 2010 at 3:29 pm

Relentless institutional selling has sent the S&P500 down nearly 3%. TICKscore currently at -51, Cumulative TICK -110,000. New 20-day lows have surged to over 2,200, a short-term negative indication. Historically, readings this high have led to further weakness over the short-term. In the table below I’ve listed each of the last thirty instances in which 20-day lows exceeded 2,000 for the first time in three sessions…

New 20-day Lows Top 2,000 First Time in Three Days
02/04/10… ???
01/27/10… Lower S&P close one session later
01/22/10… Lower S&P close four sessions later
10/28/09… Lower S&P close two sessions later
07/08/09… Lower S&P close two sessions later
02/17/09… Lower S&P close one session later
01/15/09… Lower S&P close two sessions later
11/13/08… Lower S&P close one session later
10/24/08… Lower S&P close one session later
09/29/08… Lower S&P close four sessions later
09/05/08… Lower S&P close two sessions later
06/20/08… Lower S&P close two sessions later
06/10/08… Lower S&P close one session later
03/17/08… No lower close within next four days
03/03/08… Lower S&P close one session later
01/16/08… Lower S&P close one  session later
01/04/08… Lower S&P close two sessions later
11/19/07… Lower S&P close two sessions later
10/22/07… No lower close within next four days
08/10/07… Lower S&P close one session later
07/24/07… Lower S&P close two sessions later
02/27/07… Lower S&P close three sessions later
06/08/06… Lower S&P close one session later
05/15/06… Lower S&P close one session later
10/12/05… Lower S&P close one  session later
10/06/05… Lower S&P close two sessions later
04/15/05… Lower S&P close three sessions later
03/23/05… Lower S&P close one session later
08/06/04… Lower S&P close four sessions later
07/22/04… Lower S&P close one session later
05/07/04… Lower S&P close one session later

Note that in 28 out of 30 cases, or 93% of the time, the S&P500 posted a lower close (below the setup day’s close) within the next four sessions, significantly above the 72% random chance in the same time frame.

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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.