Follow through on big down days in IWM

Following up trading the odds twitter comments on how SPY performed after large increase in VIX and where the adv:dec < 1:10, I looked at large drops (> 3%) in the IWM and what happened the next day.  There have been about 67 of them, most of them since 9/1/2008.   The median change the next day (close-close) was up 0.7% with 43 up (64%), 24 down.  But note, the median low for the next day was -1.75%, so there is a pretty good likelihood of some follow through on the down side before things turn around.  Only six times was the low of the next session above the close of the prior session.

Of course tomorrow being the day the unemployment numbers are announced often has its own craziness.

post script – IWM opened higher 42 of  67 times, 2 opened at the prior close.  Six times it never went below the prior close and six times it never went above the prior close.

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