In my post on 20th May I was looking at the four high quality topping patterns forming on SPX, QQQ, DIA and IWM. As is often the case these didn’t deliver and the indices rejected back into higher highs. We are now looking at a new candidate high forming here but for a number of reasons these highs tend to take a while to form. This one does not look ready yet for much more downside unless there is some really bad news today.

I watch the historical stats for each day carefully as they often deliver, and last week and this week have been unusual for two reasons. Firstly every day has had a significant bullish or bearish lean, which is rare, as the majority of trading days in any year lean neutral. Secondly, the historical lean towards a red or green close has delivered every day since the start of last week, and I’m thinking the odds are decent that will continue to be the case into the end of this week.

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