FIGURE 14
Figure 14 shows the market at the close. It did rally into the closing bell as forecast, in this case very sharply. This is one of those moves in the market that the trader can not regret. Even though the forecasting technology did forecast it, it was not a move that could be traded safely. A move entered late in the day gives a trader very little opportunity to maneuver.
This shows the effective use of SP.IXGO on January 7th, 1997. This was a day when the market followed the inverted forecast. Even though the energy forecast is not perfect, it was clearly a great aid to a trader. The market follows the normal or the inverted forecast for the entire day approximately 80 percent of the time. During the other 20 percent of the days, the market may bounce between the normal and the inverted forecast. If this happens the trader should get out and wait for a better day.
