RSP closes within prior day's range after lackluster session
Guggenheim S&P 500 Equal Weight ETF (RSP) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RSP finished Monday at 103.38 gaining $1.15 (1.12%). Trading $0.49 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 2nd, RSP actually gained 1.12% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RSP as at Jul 06, 2020):
Monday's trading range has been $1.31 (1.26%), that's far below the last trading month's daily average range of $2.48. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RSP.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The market managed to close above the 20-day moving average at 103.32 for the first time since June 18th.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for RSP. Out of 197 times, RSP closed higher 61.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.90% with an average market move of 0.37%.