The Monday Effect

The Monday Effect is a theory that the stock market will continue its' Friday moves on Monday. For example if the markets drops on Friday then there is a good chance that the market will drop more on Monday according to the Monday Effect. In reverse, if the market was up on Friday then you should see further gains on Monday according to this theory.

This theory, like many others is based on technical analysis of the stock market. It was originated years ago when traders and investors would spend weekends analyzing the market. However in this day and age of advanced technology where investors can get up-to-the-minute/second trading statistics, it is even easier to follow whether or not this theory proves correct.