Extreme Selling Leads to Rare & Immediate Reaction
After already discussing the legendary selling wave stocks experienced this month through December 24th, one of the sub models within our big stock market model triggered a scenario based on historic levels of overdone selling that has only been seen a handful of times since 1980. Each and every time, stocks saw significant gains almost immediately, even when in the context of a bear market.
You can see all of these on the charts below with the arrows pointing to the triggers, including the most recent one at the close on December 24th. If this sub model works anything like past instances, stocks should be rallying before the week is over. If stocks continue to crater, it will be yet another case in what is becoming a very long line of failed studies and indicators this month.