Mar
08

Seventh Consecutive Session Without a Lower Low

By on Monday, March 8th, 2010 at 12:40 pm

Short-term bullish price action as S&P futures have once again posted a higher high and what looks like a higher low immediately after an unfilled upside gap on Friday. Regardless of where the S&P settles, the pattern of higher highs and lows tells us to expect a close above today’s settlement within the next couple of days. Here’s a look at the last 30 instances in which S&P futures posted a higher high and low the day after an unfilled upside gap (regardless of whether the close was positive or negative)…

S&P Futures Higher High & Low after Upside Gap
03/03/10… Higher S&P close one session later
03/02/10… Higher S&P close one session later
12/28/09… No higher close next 1-2 sessions
12/22/09… Higher S&P close one session later
12/11/09… Higher S&P close one session later
12/02/09… Higher S&P close two sessions later
11/10/09… Higher S&P close one session later
10/15/09… Higher S&P close two sessions later
10/09/09… Higher S&P close one session later
09/09/09… Higher S&P close one session later
08/24/09… Higher S&P close one session later
07/16/09… Higher S&P close one session later
06/02/09… No higher close next 1-2 sessions
05/05/09… Higher S&P close one session later
04/13/09… No higher close next 1-2 sessions
11/25/08… Higher S&P close one session later
04/17/08… Higher S&P close one session later
04/02/08… Higher S&P close one session later
03/19/08… Higher S&P close one session later
12/24/07… Higher S&P close one session later
12/06/07… Higher S&P close two sessions later
11/29/07… Higher S&P close one session later
07/13/07… No higher close next 1-2 sessions
04/23/07… Higher S&P close one session later
04/17/07… Higher S&P close one session later
02/15/07… Higher S&P close two sessions later
11/30/06… Higher S&P close two sessions later
08/17/06… Higher S&P close one session later
06/30/06… Higher S&P close one session later
11/18/05… Higher S&P close one session later

Note that in 26 out of the last 30 occurrences, or 87% of the time, the S&P posted a subsequently higher close (above the setup day’s close) within the next two days, significantly above the 66% at-any-time odds for a higher close within two sessions 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.