At first, I think this statement is of no reason. But after I simply run an analysis. It shows the bearish trend is so obvious on Monday following a down Friday for DOW and NASDAQ. For NASDAQ since 1984, here is the up day rate from Monday to Friday without considering the previous day up or down: day of week up-day-rate Mon 50.33% Tue 52.08% Wed 59.34% Thu 58.06% Fri 57.57% So, the best days in order is Wed, Thu, Fri, Tue and Mon for NASDAQ. Following a down day, the winning rate of the week days are: Mon 38.43% Tue 49.91% Wed 56.06% Thu 51.29% Fri 49.58% So, it is funny to see Monday is bearish following a down Friday. Consider DOW, the result is similar but the percentage is not that big as compared with NASDAQ index. They are more close to 50% mark. Following a down day, DOW index since 1970 of the weekdays historically show the winning rate (up day percentage): Mon 46.80% Tue 51.69% Wed 53.43% Thu 49.58% Fri 47.37%
You might want to re-run those numbers for the last 5 years and see how they compare. I bet you see some real changes.
You are right. Here you get the stats from Jan 1, 2002 up day rate of NASDAQ following a down day: Mon 50.41% Tue 55.74% Wed 57.81% Thu 52.89% Fri 50.79% up day rate of DOW following a down day: Mon 57.63% Tue 56.39% Wed 60.63% Thu 50.00% Fri 50.77% Wed is always the best. enjoy
Statistically, this is wrong. The testing result is somewhat opposite. For NASDAQ, if Monday is down, the rest of the week from Tue to Fri, the chance of up is 59.21%. If Monday is up, the chance of the rest of the week going up is actual lower at 56.64%. For DOW, the result is similar. So, do not bet on the claim of Monday setting the tone of the week.