The Dow rallied a 'big' 3.2% on Tuesday after opening up 'big', and rallied in a 'trend day' pattern to make a new 20-day high and then closed at 12,654.36. Strength in U.S. equities bolstered the strength of the once-mighty greenback - the U.S. Dollar index rallied a 'very big' 1.1%.
Q: How has DJIA performed over the next 50 trading days when it has a 'big' rally, the closing price is higher than the open on the day, the high crosses to a new 20-day high, and the U.S. Dollar Index is up 'big'?
A: EventEdge indicates that DJIA has shown a strong bullish edge that peaks 12 trading days after the event. The projected date for the peak of the bullish edge relative to the current event date, Tuesday, April 1 is Thursday, April 17. The Dow rallies in 100% of the cases (10 of 10) by an average of 2.2%, which based on the close on the event date of (12,654) provides a target price of 12,933.
If you would like to see more details of this historical edge, go to www.markethistory.com
Darren Fabric is an Account Executive with Logical Information Machines.
