Quote:
Friday-Monday Effect During $SPX Trends
There is a good correlation between up trending markets and a positive close on Fridays. Since the start of May through today, down weeks end almost always end with a down Friday. The reverse is also true: up weeks end with an up Friday about 75% of the time. In the chart below you can easily see the correlation.
Another effect is also taking place: Fridays and Mondays tend to alternate direction. Thus, over this period of time (n=42 weeks):
When Friday is up (n=25), Monday is down 75% of the time.
When Friday is down (n=17), Monday is up 65% of the time.
In an uptrend, beware of down Fridays.
Even more so, in a downtrend, look for a strong close on Friday for a possible start to a reversal.
Uptrends tend to have a positive close on Friday; down weeks tend to have a negative close on Fridays
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fyi, just interesting info.
also for you forex traders:
http://www.zerohedge.com/news/2013-0...des-uk-aaa-aa1
an interesting chart is.... pull up spot or continuation chart for pound. switch it to weekly. we're just starting to break down of a 5 year consolidation right now. it could be a very good short. super trend down!
I'm going to be watching the pound very closely next week.