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Day After Diverging Lows

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The most notable observation from yesterday's action was the divergent lows between the SP and ND futures. Since posting the year's high back in January, the ND has clearly been the weakest index. On yesterday's low, however, it was the SP contract which made a new low for the year whereas the ND futures were unable to trade below the prior day's low.

Today's query attempts to capture the dynamics of yesterday's lows. The details of the query are described below and the table represents the open, high, low, and close in % for the next day in the SP futures. I present the results of this query as I was most intrigued by the relationship between the next day's open and low. In five of the six occurrences the SP futures either opened positive and stayed positive or opened negative and stayed negative. The lone exception was a virtually unchanged open.

Since the overnight futures are higher, I've highlighted the occurrences with higher opens. As well, I've listed the SP performance over the next five days for each.




As always Minyans, PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS. I also want to point out that I run my queries based on the index futures which may vary slightly from the action in the cash indices. For example, the SPX closed lower yesterday but the SP futures closed positive. Good Luck!

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No positions in stocks mentioned.

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