The chance of a complete reversal in the market after a 2% or greater daily move in either direction is just 1% (over 20 years).

The chance of a reversal after a selloff is twice as likely as a reversal after a rally of the same size.

Since the chance of a 2%+ close is 9%, and the chance of a 2%+ move and reversal that same day is 1%, then for every nine 2%+ closes, expect to see one 2%+ move followed by a reversal.

Tune in as Tom and Tony utilize this information, applying it to recent market activity.