Commitments of Traders and a big reversal

The 3-Year Min/Max Screen shows that "smart money" hedgers didn't establish any new extremes last week. Most of the moves were small and there was nothing really of note in the report. It does seem notable that indexes reversed so hard from the selling this week, especially the Nasdaq Composite. That index suffered an intraday loss of at least 1% for 4 straight days, culminating in another on Friday before reversing to close in positive territory. While it looks pretty on a chart, other times it carved out a similar pattern, it continued to gain over the next 2 weeks only 7 out of 27 times, averaging a return of -3.8%. Single-day reversals are a shaky leg upon which to lean.