Short Term Rebound Is Highly Probable 2-26-20

I have looked at a bunch of different criteria comparing recent action to past history of SPY.

Some key factors that have historically made for short term rebounds include:

• 2 closes in a row below bollinger bands
• Back to back 3% down days
• Gap down of 2% followed by further downside
• several others....

One very simple scan that triggered today is a 2 day cumulative Wilder's RSI2 reading below 2.

• The history of SPY had this set-up 27 times (regardless of bull/bear market), all 27 showed a positive close within the next 5 days.  The average gain was large also, as would be expected given the volatility.

I expect a continued volatile market but with a high probability of a short term rebound over the next couple days.

Currently the short term cycle analysis I follow is suggestive that there will be continued higher volatility with probable lower lows over the coming 1-3 weeks.