Over the last three days, the ND Composite formed an Island Gap. In a nutshell, the high two days ago is less than both the low of the bar three days ago and the low one day ago.
Looking back 10 years, there have been five similar patterns. The next day's date and performance (in %) as well as the return 10 days out are listed. The most recent occurrence was October 2003. In the chart below, I've circled the current pattern as well as October 2003.
Nxt Date Day Close 10 Days Out
12/10/96 Tue -0.28 -2.79
04/26/00 Wed -2.19 -3.40
09/25/01 Tue 0.15 7.10
10/18/02 Fri 1.22 4.52
10/28/03 Tue 2.62 3.12
Past Performance Does Not Indicate Future Results.
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