Near-Term Signals Point Higher: 9 of 10 Historical Matches Were Up

The signals tonight still lean to the upside in the near term. Our extreme high readings yesterday are carrying over to today’s forecast, albeit a bit less extreme. The 1-day reading, which you don't see here, was only slightly above neutral. But further out we are seeing a potential outsized strength. Maybe… Maybe the weaker names in the S&P 500 that have given us the weaker breadth readings will turn to the upside. Who knows?

For the strong 2 day rating, here are the historical matching days:

​You can see that 9 out of 10 matching days were up, and not minimally so. Those historical results are nothing to sneeze at. We still had a lowish number of matches at only 10, and it is better than last week where we only had 2. And more than last night with 8. Typically I like to see at least 20 hits to feel more confident in the forecast, but we are in rare times and we'll take what cards the market deals us.
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That is all for this evening. I do want to note that I appreciate you taking the time to read the content. As I am just getting rolling, with a focus on where I want to drive the content over time, I'd appreciate you sharing the content if you find it useful. I am working on some research projects that I think you'll find eye-opening and helpful to your trading. It does take some time to pull those projects together, and I'll probably release those in weekend updates rather than with the nightly forecast updates.

Have a Great Night!

DJ