Folks, this is history in the making. QQQ RSI2 closing beneath 1 for the 3rd consecutive day is extremely rare. This is only the 5th time in the history of QQQ that this has occurred.
Here are the dates for all occurrences:
What can we expect to happen next? Let’s test it and find out what has happened in the past…
Buy QQQ at the close if:
- RSI2 < 1 for the 3rd consecutive day
Sell X days later. All QQQ history used. No commissions or slippage included.
Yes, there are only 3 samples. We couldn’t say that history was being made if there were enough samples to get something statistically significant.
The average next day bounce of 3% is certainly enticing. Again, beware of the miniscule sample size.
What is probably more instructive, and more generalizable, is that volatility ramps up. What we have are 3 swings averaging 3% over the course of only 10 days.
Perhaps the most important takeaway is that there has only been 1 previous date when QQQ RSI2 has closed beneath 1 for 4 consecutive days…
Good luck tomorrow!