By Rob Hanna
The decline in SPX meant it was the 3rd day in a row in which it closed lower. 3-day pullbacks will often suggest an upside edge. I also found it notable that 1) the pullback originated from a 50-day high, and 2) it left SPX at a 10-day low. So I examined other times we saw such drops, and found some interesting results.
Historically we see that 3-day drops from 50-day highs to 10-day lows have often by followed by a bounce in the next few days. Traders may want to keep this in mind as they determine their trading bias.
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