Selling Pressure Persists On Above Average Volume
By
Rennie on Friday, February 5th, 2010 at 2:34 pm
Not surprising to see downside follow-through in the wake of Thursday’s high volume selloff, but the extent of today’s move is noteworthy. S&P futures are currently off 1.4%, a sizable move coming on the heels of yesterday’s unfilled downside gap. Since 1990, there have only been 20 instances in which S&P futures lost more than 1% immediately following an unfilled downside gap session. In every case the S&Ps proceeded to post another subsequently lower close within the next four sessions, suggesting sellers will most likely make their presence felt once again early next week. This setup will go into effect on any close below SPH 1051.
S&P Futures -1% following Unfilled Downside Gap
09/01/09… Lower S&P close one session later
06/16/09… Lower S&P close one session later
03/03/09… Lower S&P close two sessions later
10/07/08… Lower S&P close one session later
05/21/08… Lower S&P close two sessions later
11/18/03… Lower S&P close two sessions later
01/21/03… Lower S&P close one session later
09/24/02… Lower S&P close four sessions later
07/22/02… Lower S&P close one session later
03/12/01… Lower S&P close two sessions later
02/20/01… Lower S&P close one session later
09/15/99… Lower S&P close four sessions later
07/30/99… Lower S&P close two sessions later
05/06/98… Lower S&P close one session later
10/24/97… Lower S&P close one session later
12/12/96… Lower S&P close two sessions later
05/09/94… Lower S&P close two sessions later
03/25/94… Lower S&P close two sessions later
10/10/90… Lower S&P close one session later
08/22/90… Lower S&P close one session later
We do have a short-term bullish signal set to trigger as well based on the persistently oversold McClellan (currently -290) and contraction in Down Volume %, but I would prefer to see the setup above fulfilled before fishing for a bottom.
Selling Pressure Persists On Above Average Volume
By Rennie on Friday, February 5th, 2010 at 2:34 pmNot surprising to see downside follow-through in the wake of Thursday’s high volume selloff, but the extent of today’s move is noteworthy. S&P futures are currently off 1.4%, a sizable move coming on the heels of yesterday’s unfilled downside gap. Since 1990, there have only been 20 instances in which S&P futures lost more than 1% immediately following an unfilled downside gap session. In every case the S&Ps proceeded to post another subsequently lower close within the next four sessions, suggesting sellers will most likely make their presence felt once again early next week. This setup will go into effect on any close below SPH 1051.
S&P Futures -1% following Unfilled Downside Gap
09/01/09… Lower S&P close one session later
06/16/09… Lower S&P close one session later
03/03/09… Lower S&P close two sessions later
10/07/08… Lower S&P close one session later
05/21/08… Lower S&P close two sessions later
11/18/03… Lower S&P close two sessions later
01/21/03… Lower S&P close one session later
09/24/02… Lower S&P close four sessions later
07/22/02… Lower S&P close one session later
03/12/01… Lower S&P close two sessions later
02/20/01… Lower S&P close one session later
09/15/99… Lower S&P close four sessions later
07/30/99… Lower S&P close two sessions later
05/06/98… Lower S&P close one session later
10/24/97… Lower S&P close one session later
12/12/96… Lower S&P close two sessions later
05/09/94… Lower S&P close two sessions later
03/25/94… Lower S&P close two sessions later
10/10/90… Lower S&P close one session later
08/22/90… Lower S&P close one session later
We do have a short-term bullish signal set to trigger as well based on the persistently oversold McClellan (currently -290) and contraction in Down Volume %, but I would prefer to see the setup above fulfilled before fishing for a bottom.