Saturday, July 12, 2008
3 day bottom rule
While this doesn't apply 100% of the time (nothing does) an intermediate low rarely forms without seeing at least 3 down days in a row. Other than the Nov. low every intermediate decline during this bull market hasn't ended until we got at least 3 down days in a row. The same held for all the intermediate declines during the last bear market in 01 & 02. The exception was the final low in Oct. 02.
As long as we continue to see the market bounce every couple of days the odds of a bottom forming are slim.