7/11 Indices, page-127

A few stats to be aware of on SPX

Oct 2008 saw an 11.5% one day gain
A day later saw a small drop
The following day wiped 9% - finishing below the low from rip up.

Aug 2011 saw a 6.6% drop
Next day 4.7% pop
Next day 4.4% drop
Next day 4.6% pop
= chop city

Dec 2020 saw a 9.5% drop
Next day 9.2% pop
Next day 12% drop

Shortly after was bottom on Covid crash
That resulted in 9.3% gain
Followed by a very volatile 1% gain
Followed by a 6.2% gain
Followed by a 3.3% very volatile drop

Then there were a number of very large pops (up) shortly after.

What does this all mean?

Just looking at unusually large moves over the last 15yrs it seems if the pop is mid dump then it gets sold within the next 2 trading sessions.

If the pop is coming off a bottom then the rally may have legs and will be quite vicious with its upward trajectory.

IMO this looks more like it's coming off a bottom so the move may just have legs.

Regarding the XJO we are either looking at a double top here at 7150 and reversal will be immediate.

Or the rally has legs and we go on to test the most traded price from the consolidation (distribution) zone from June 21 - June 22 around 7330.

Tough market but I think there's one thing you can bank on and it's volatility - moves like this don't happen in a calm market.

Good luck and trade safe...