• Study of the Week: Why The SPX Will Be Lower Today

    by  • January 24, 2013 8:42 am • Quick Hits, Study of the Week • 0 Comments

    Say what you want about this market, it is strong.  Not much can slow it down, but this study just might.

    The SPX has been up 6 days in a row.  Well, the past 13 times this has happened (going back to October ’06) it has dropped on day seven.

    Now it hasn’t always been so bearish for day seven, as going back to ’90 the odds we’ll be higher today is 37%.  Still, well below the 53% of the days that have been positive since ’90.

    So, we very well could be due for a well deserved break soon.  None the less, check out the 1- and 2- month returns after six straight up days for the SPX.  By no means is this a sell signal and I’m guessing the overall strength will continue after some eventual consolidation.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


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