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The UK Stock Market Almanac 2016: Seasonality analysis and studies of market anomalies to give you an edge in the year ahead by Stephen Eckett

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Tuesday reverses Monday

Some traders believe that Tuesday’s market reverses Monday’s. In other words, if the market rises on Monday it will fall the following day, and vice versa.

Is this true?

The first chart below shows the change in the FTSE 100 on:

  1. Tuesdays when the market has risen the previous day (Monday up), and
  2. Tuesdays when market has fallen the previous day (Monday down).

The data analysed covers two periods: 1984-2015 and 2000-2015.

For example, in the period 2000-2015, the market fell on average 0.07% on Tuesdays following a Monday increase.

As can be seen, for the longer period of 1984-2014 the theory that Tuesday reverses ...

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