The S&P 500 has gone streaking & not in a good way.
Beauty is in the eye of the beholder & there's something for everyone when looking at the variety of streaks the index is putting up into today's close.
To start, here are 4-week losing streaks that declined -5% or worse:
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Since the Bull was born in 2009, this has been a sure thing sign of a bottom.
In other macroeconomic backdrops - not so much (note the 70's...)
The index is also down -1% or worse 4 weeks in a row, which manages to pluck a lot of the red from the table above, but only pre-GFC:
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Finally, we're also down -2% or worse three straight weeks.
This one is rare and annotates a very volatile month ahead.
Some boom, some bust and that's why no side (bull/bear) should position like a hero at this point.
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As always, the past alone can't be used to consistently predict the future. If it was that easy, I'd have a lot more money.
But, the past can be used to dispel an emotional bias.
So anyone who thinks that they absolutely know what is coming...should probably think again.
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@simsonfinsklap1
that's what I put in the first attached tweet. Pre GFC, nowhere near as bullish.
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@SJD10304
Last streak of 4 or more weekly closes under the previous week low was in July 2008 (which had 6 weekly closes under the previous week low in a row). It was ugly for the S&P500 6 more months.
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