After 157 trading days in 2015, the Dow has traded in a range of just 6.44%. This was derived using a closing basis for the high year-to-date close of 2.75% on May 19 and low close of -3.69% on January 30. The difference between the two comes out 6.44%. As you can see below, this is now the tightest range ever going clear back to 1900.
CLICK ON CHART TO ENLARGE
What does this mean? For starters, it sums up just how frustrating the year has been. Every time the bulls think they have the upper hand, we sell-off. The flip side is once the bears are ready to takeover, it means a bounce is coming. The bottom line is things are coiling and this could suggest a big move is coming, we just have to figure out which way that move will be.
What do you think took place after such a tight trading range?
Later today, we will release the results for the rest of the year for each of the top 20 tightest ranges to our Premium Members. This will paint a nice picture for how the rest of this year could play out. We will release the results of this quiz on Thursday. If you would like to know the results of the quiz before Thursday, send an email to email@example.com and we will forward the results to you ASAP.
If this type of research is something you would like to receive on a regular basis, we would be honored if you were a Premium Member