Every day, I update dozens of spreadsheets with market statistics, several of that don't seem to be ordinarily found. My expertise is that distinctive knowledge contain the foremost sturdy edges.
From the Barchart website, I track the quantity of stocks across all exchanges that create recent one-month highs and one-month lows. Over the past year, once the quantity of stocks creating new highs has been within the prime half its distribution, following 3 days in SPY have averaged a gain of .22% versus .06% for the remaining occasions. once the quantity of stocks creating new lows has been within the bottom half its distribution (few stocks creating recentmonthly lows), following 3 days in SPY have averaged a gain of +.23% versus .05% for the opposite occasions.
From the Index Indicators website, I track the share of SPX stocks closing on top of their five-day moving averages. Over the past year, once that share has been on top of seventy, following 5 days in SPY have averaged a gain of .46%, with seventy nine of occasions profitable. once the share has been below thirty, following 5 days in SPY have averaged a loss of -.13%.
When we see broad market strength, has that light-emitting diode to additional strength (momentum), or has it light-emitting diode to weakness (reversal)? Knowing the regime we're in will facilitate U.S. frame worthy hypotheses regarding market behavior. Those become smart trades after we see short flows lining up with those concepts.
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