A Post

Long time no see nor checked in....So I thought that I'd get back on track and make a nice little post for you or anyone (if anyone) out there:

I think everyone will agree that today was a bearish jump off the side of a cliff!!! I love days like this (if I'm positioned for it - which I wasn't because it's too hard for me to trade in this kind of environment as of recently).

When looking at the $SPX the momentum (Red line) on MFC study is at 0. So i got curious as to how many times the red line has actually hit 0 in the last 2 years...Well, it's only happened 2 other times besides today. Of those 2 days, the very next trading session resulted in one session at +15 points (7/30/07) and the second session resulted in -13 points (2/6/08)...So, to go a little further, I wondered how many times the Red line closed at 1 or below, and what did the SPX do the day after.

Here are the results:

SPX Rallies w/ momentum line @ or below 1.00
-------------------------------------------
03/06/07: +19 Points (5 day rally)
03/14/07: +11 Points (2 day rally)
05/01/07: +4 points (5 day rally)
05/11/07: +14 points (1 day rally)
06/08/07: +17 points (2 day rally)
06/13/07: +23 Points (3 day rally)
07/11/07: +9 points (3 day rally)
07/30/07: +15 points **(Red line was @ zero day before)**
08/06/07: +34 points (3 day rally)
08/10/07: .55 cents (Flat; no rally)
08/14/07: -20 points (rallied close to 8 more days after that)
08/29/07: +31 points (1 day rally)
10/22/07: +10 points (2 day rally)
11/13/07: +40 points (1 day rally)
12/17/07: -20 points (rallied close to 6 days after that)
12/18/07: +9 points (same rally as above)
01/07/08: +2 points (1 day rally)
01/16/08: -4 points (fell 3 more days after that)
02/06/08: -13 points **(Red line was @ zero day before)**
03/11/08: +46 points (1 day rally)
03/27/08: -15 points
06/12/08: +4 points (3 day rally)
06/27/08: ?????????? **(Red line was @ zero day before)**
------------ --------- --------- --------- --------

The date represents the trading session after the Red line reaching 1 or below. The +/- of points is how many points on the $SPX that were either gained or lost in that 1 day. The 3rd column tells us how many days after the reading that the SPX rallied once the red line hit 1 or below...

In the past 2 years, the $SPX has rallied 17/22 sessions. Of those 17 trading days, it's averaged a positive gain of +17 points...

Just thought I'd share what I found.

-Matt J