Tuesday, April 17, 2012

SOX Closes Up Despite the Strong Drop in the NDX

Two weeks ago I showed how a negative SOX on a day when the NDX is strong can suggest bearish implications for the short-term.

Last night Johan, a frequent reader, observed that the reverse had occurred (NDX down over 1% while SOX was up).  He wondered what the implications of that might be.  It stoked my curiosity as well.  So I took a look.



Moves higher have strongly outsized moves lower, but the consistency has not been great - just a little over 50/50.  So I am not sure I would label this as "bullish", but it provides some hope for the bulls and is certainly better than the alternative we looked at a couple of weeks ago.

1 comment:

Johan Lindén said...

Thanks Rob!

But an avg. profit of 1% and a profit factor of 2.5 on ONE day sounds pretty bullish.

And from what we can see at this moment it worked at pretty well this time.