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Two Day Pattern

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What happens when a 30 day high follows a 5 day low?

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The SP finally broke out of the recent range yesterday. Since the breakout occurred after early weakness on Tuesday, I wanted to see what happens after similar two day patterns.

Today's query stipulated that one day ago the SP futes recorded at least a thirty day high with a higher close (Wednesday) AND two days ago the SP low was at least a five day low (Tuesday). Surprisingly, there were just four occurrences. The table below shows results for the next day and five days later.


As always, past performance does not indicate future results. However, the results argue for a two-sided trade today with slightly lower bias. Looking five days out, Hoofy gets the nod. Good Luck!

No positions in stocks mentioned.

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