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Tuesday, April 18, 2023

A consistent bullish pattern emerging

 We have seen consistent bullish pattern: last hour buying, for the past few days, which is in line with what has been reported by the Sentimentrader last week as follows.

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An increase in buying pressure in the last hour of trading

Key points:

  • The last-hour indicator increased for seven consecutive sessions
  • After similar periods of late-day buying pressure, the S&P 500 showed a consistent upward bias

Buying pressure is outpacing selling pressure in the last hour of trading 

A resurgence amongst traders and investors to cover shorts or accumulate stocks late in the day sent the last-hour indicator meaningfully higher over the last five months.

The indicator, a cumulative advance-decline line for the last hour of trading, measures whether buyers or sellers dominate the most critical time frame of the day.

The buying pressure accelerated last week when the last hour of trading recorded seven consecutive higher closes.

What the research tells us...

Over the previous five months, the last-hour indicator has steadily risen as buying pressure outpaced selling pressure in the last hour of trading. Last week, the buying accelerated, with seven consecutive increases for the S&P 500 in the final hour. After similar win streaks, the large-cap index exhibited solid returns, win rates, and z-scores, especially a month later.

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To trade this bullish pattern, we have done overnight trades accordingly with steady incomes to harvest. Hope the momentum will continue in the days ahead💪💪

 

et.

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