STOCK MARKET JUST TRACED AN UGLY ‘OUTSIDE DAY,’ WHAT DOES IT MEAN?
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
An Ugly Outside Day
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The pattern shown on the chart is an ugly ‘outside day.’
- Historically, in the period before the momo crowd came to be in control of the stock market, this pattern on Friday would have almost certainly resulted in a much bigger selloff on Monday.
- The trading pattern today has similarities to trading on October 16, 1987, which was a Friday.
- On October 19, 1987, the stock market crashed and lost 22% in one day.
December 4, 2021