Yesterday I mentioned “the last time the market has had a 2-day cumulative ConnorsRSI reading (the past two days added together) of under 30 was on June 24 and the Fed proceeded to step in and launch a 5 week upward move”.
Cumulative ConnorsRSI levels under 30 tend to do a good job of identifying oversold non-leveraged, equity ETFs. Using an exit of a closing level above ConnorsRSI 50 has seen prices being higher 69.1% of the time with a large sample size of 18,722 simulated trades from January 2006-July 2013. Yesterday was another good example of this in SPY and many other liquid ETFs.
Today the market is neutral with no real edges on either side. The Fed’s minutes should help move things.
The above excerpt is from Larry Connors’ Daily Battle Plan – A professional-grade trading information service that will help you understand the quantitative metrics behind each day’s market conditions and how they point to selective strategies for high-probability trades.
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