Thursday, September 15, 2016

Market Health Check-Up: Someone Please Call A Paramedic

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*Market opens tell a lot. They show what people want to do after a night of thinking.
*If you add up those opens, they tell a story.
*This story could call for a doctor.

We had a similar report August 3 that showed how opens can predict down moves. We were a little early, but wanted to show our findings. This signal however we received two days ago comes a little less often, and we wanted to share it with you. We think simple opens and closes of the market (NYSEARCA:SPY) along with action of course can give clues on how the market feels. Our health checkup shows the market has a high temperature and it needs to come down.
Market Health
In this chart we show a simple formula we developed that adds up the market opens over 10 days. An up open scores a 1 and a down open scores a -1. Over time it tells a story. In today's case the number reached -6 which is rare and extreme. It means there were many more down opens than up opens.
Let's look at the chart the last three times we saw this happen. All the data will be at the end of the report.

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