7 Days And Counting

Posted by barkand on August 2, 2011 under Price trends | Be the First to Comment

With the U.S. stock market wobbling to its 7th consecutive losing day, we did a quick check of the historical data for similar situations.

We found 26 previous instances since 1-1-2000 (not counting the recent turmoil) where the S&P500 was down at least 5 days in a row and was also below its 50-day moving average. The results are mildly positive, though not by as much as we expected. Looking one week ahead, the numbers do not excite us much. However, one month into the future the results are better. A 2-1 ratio of winning months to losers and an average and median return just short of 3%.