It's Tuesday, and we'd be remiss to not mention the possibility of a counter-trend close. Whether it's self-fulfilling or not, the concept of "Turnaround Tuesday" has been the most consistent variable over the last three weeks. We enter today's action on the heels of five consecutive up closes in the S&P. Does the number "six" sound familiar? Coming into last week, the S&P had closed lower for six consecutive weeks and then bucked the trend on the seventh. Will the S&P buck the trend today?
A quick analog stipulating that the day is Tuesday and the S&P futures closed up five days in a row suggests at least the possibility. There were 15 occurrences and the close was lower in 2/3 of them. However, a closer look at the day's range suggests a narrow range. The average high was just +.38%, the average low just -.60%, and the average close -.14%.
Speaking of seven, it's worth noting that Intel (INTC: NASD) has quietly posted six consecutive higher closes and is working the Q2 earnings gap which would fill on trade to 26.14. Since making low in October 2002, the stock posted seven consecutive higher closes on three occasions: Oct '03, Nov '03, May '04. In May '04, the streak ended with eight higher closes and all others closed lower on the eighth day.
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