Just to follow up... Out of the 4 instances, 3 of the 4 did gap open lower the next week.
The 1 week closing return for the one week that gapped up was 2.65%, while the 3 that gapped down had 1 week return of 0.29%, 0.53%, and 1.31%. So while sample size is very small, a gap up would seem to be the more bullish ST scenario.
Interestingly it is the opposite for the Intermediate-term with the gap up week having the lowest 8-week return of 6.31% versus the gap down weeks 8-week returns of 6.65%, 8.34%, and 9.30%. |
