Watch for this Price/Volume Pattern on SPY

SPY volume running slightly below levels at this time Friday as the index gives up morning gains. Should SPY close lower today and volume come in below Friday’s level, it would mark the third consecutive day of declining prices on lighter volume. That’s a very rare event, only occurring 11 times in the history of the SPY. In all but one case the market was trading higher three sessions later…

SPY Three Lower Closes on Successively Lighter Volume
12/23/08… SPY +0.9% three days later
08/04/08… SPY +1.6% three days later
07/28/08… SPY +2.6% three days later
09/24/07… SPY +0.9% three days later
11/11/02… SPY +2.8% three days later
06/26/01… SPY +0.9% three days later
11/20/00… SPY +0.1% three days later
06/18/96… SPY +0.7% three days later
03/21/96… SPY +0.6% three days later
10/07/93… SPY +0.5% three days later
07/19/93… SPY -0.5% three days later

Categories : Archived Intraday Commentary, Intraday Commentary

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