When QQQ Gaps Down Big From A High By: Quantifiable Edges | May 6, 2019
Trump’s tweets on Sunday have put the market in a state of disarray. After closing Friday at an all-time high, QQQ is set to gap down nearly 2% this morning. Below is a look at other times QQQ gapped down at least 1% to open the day after closing at a 200-day high the day before.
Instances are quite low. It is very rare to see the market gap down such a substantial amount after posting a new high. There is also no real consistency among the results. To increase sample size, I also looked at 1% gaps down from 50-day highs.
Numbers here are not overwhelming. With only a sample size of 15 this does not appear to be a compelling edge. But they are a little disheartening if you are hoping for an immediate bounce on Monday morning. It is obviously a bit more suggestive of a further selloff than it is a rally.
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must! • DiscoverGold
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