Tuesday 9/14/2010

Today's Market Highlights:  

Exception 1 - Today is a day following an outside up day.  We have had 126 such days in the past 13 years.  56% of the days following such days have ended up higher by the end of the day.
Exception 2 - Monday was also a day that the close and open were very close(Near Doji).  Of the 126 outside up days, there have been 11 days with close - open <= 2.5.  73% of days following such days ended up higher with a win/loss ratio (profit factor) of 9.04.
Exception 3 -  Today is the day following an extremely unusual scenario of six consecutive unfilled gaps.  Chance of this happening is about 0.07%.  This has never happened before.  However, two other times we have had 5 consecutive unfilled gaps.  Once on 3/11/1998 and once on 7/25/2007.  In both cases, the market moved at least 60 points in less than a month in the direction of the trend. 

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