On Watch for Follow-through from Wednesday’s Upside Gap
By
Rennie on Thursday, September 2nd, 2010 at 3:20 pm
S&P futures in the process of posting a rally day after Wednesday’s unfilled upside gap. Should futures close higher, it would be a positive indication looking out two trading days. A rally day (higher high, low & close) immediately after an upside gap suggests bullish momentum remains intact. The last thirty times that the front-month S&P contract posted a higher high, low and close immediately after an unfilled upside gap are listed in the table below…
S&P Futures Higher High, Low & Close After Unfilled Upside Gap
04/15/10… S&P futures -1.1% two sessions later
03/08/10… S&P futures +0.8% two sessions later
03/03/10… S&P futures +1.6% two sessions later
03/02/10… S&P futures +0.4% two sessions later
12/28/09… S&P futures -0.1% two sessions later
12/22/09… S&P futures +0.8% two sessions later
12/11/09… S&P futures +0.1% two sessions later
11/10/09… S&P futures -0.4% two sessions later
10/15/09… S&P futures +0.1% two sessions later
10/09/09… S&P futures +0.1% two sessions later
09/09/09… S&P futures +0.9% two sessions later
07/16/09… S&P futures +1.4% two sessions later
06/02/09… S&P futures -0.2% two sessions later
05/05/09… S&P futures +0.4% two sessions later
04/13/09… S&P futures -0.6% two sessions later
11/25/08… S&P futures +4.9% two sessions later
04/17/08… S&P futures +1.2% two sessions later
04/02/08… S&P futures +0.1% two sessions later
12/24/07… S&P futures -1.1% two sessions later
12/06/07… S&P futures +0.8% two sessions later
11/29/07… S&P futures +0.3% two sessions later
07/13/07… S&P futures -0.1% two sessions later
04/17/07… S&P futures +0.1% two sessions later
02/15/07… S&P futures +0.2% two sessions later
11/30/06… S&P futures +0.6% two sessions later
08/17/06… S&P futures +0.1% two sessions later
11/18/05… S&P futures +1.0% two sessions later
05/27/05… S&P futures +0.1% two sessions later
05/19/05… S&P futures +0.4% two sessions later
02/01/05… S&P futures +0.0% two sessions later
Note that in 23 out of 30 occurrences, or 77% of the time, the S&Ps were trading higher two sessions later, well above the 53% random odds of a higher S&P two days later in the same time frame. Keep in mind futures went out with about a 3 point premium on Wednesday, so they’re currently only up about half of the cash index.
On Watch for Follow-through from Wednesday’s Upside Gap
By Rennie on Thursday, September 2nd, 2010 at 3:20 pmS&P futures in the process of posting a rally day after Wednesday’s unfilled upside gap. Should futures close higher, it would be a positive indication looking out two trading days. A rally day (higher high, low & close) immediately after an upside gap suggests bullish momentum remains intact. The last thirty times that the front-month S&P contract posted a higher high, low and close immediately after an unfilled upside gap are listed in the table below…
S&P Futures Higher High, Low & Close After Unfilled Upside Gap
04/15/10… S&P futures -1.1% two sessions later
03/08/10… S&P futures +0.8% two sessions later
03/03/10… S&P futures +1.6% two sessions later
03/02/10… S&P futures +0.4% two sessions later
12/28/09… S&P futures -0.1% two sessions later
12/22/09… S&P futures +0.8% two sessions later
12/11/09… S&P futures +0.1% two sessions later
11/10/09… S&P futures -0.4% two sessions later
10/15/09… S&P futures +0.1% two sessions later
10/09/09… S&P futures +0.1% two sessions later
09/09/09… S&P futures +0.9% two sessions later
07/16/09… S&P futures +1.4% two sessions later
06/02/09… S&P futures -0.2% two sessions later
05/05/09… S&P futures +0.4% two sessions later
04/13/09… S&P futures -0.6% two sessions later
11/25/08… S&P futures +4.9% two sessions later
04/17/08… S&P futures +1.2% two sessions later
04/02/08… S&P futures +0.1% two sessions later
12/24/07… S&P futures -1.1% two sessions later
12/06/07… S&P futures +0.8% two sessions later
11/29/07… S&P futures +0.3% two sessions later
07/13/07… S&P futures -0.1% two sessions later
04/17/07… S&P futures +0.1% two sessions later
02/15/07… S&P futures +0.2% two sessions later
11/30/06… S&P futures +0.6% two sessions later
08/17/06… S&P futures +0.1% two sessions later
11/18/05… S&P futures +1.0% two sessions later
05/27/05… S&P futures +0.1% two sessions later
05/19/05… S&P futures +0.4% two sessions later
02/01/05… S&P futures +0.0% two sessions later
Note that in 23 out of 30 occurrences, or 77% of the time, the S&Ps were trading higher two sessions later, well above the 53% random odds of a higher S&P two days later in the same time frame. Keep in mind futures went out with about a 3 point premium on Wednesday, so they’re currently only up about half of the cash index.