Day After Diverging Lows
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!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter