“She’s got legs, she knows how to use them,” the year was 1990 and the group – ZZ Top; except in this case I am not talking about the hit song, but rather the stock market for after a somewhat “kiss your sister” type session the Dow put “legs on” to the upside late last Friday. “She’s got legs” indeed for the session may have locked up the lows, at least on a short-term basis. To be sure, the sequence was about right following the crashette of May 6th at ~1066 based on the S&P 500 (SPX/1087.69). Recall after that “flash crash” we got the perfunctory 1 – 3 session stabilization/bounce followed by the downside retest of that ~1066 intraday low. As stated, sometimes said low is marginally violated, but most of the time it is not. Obviously, the SPX’s May 6th low was violated last week by Friday’s intraday low of 1055.90.
Accompanying that low, however, were some pretty amazing statistics. For example, according to my friends at Bespoke Investment Group, as scribed last Thursday:
…….read more HERE