Say what you want about this market, it is strong. Not much can slow it down, but this study just might.
The SPX has been up 6 days in a row. Well, the past 13 times this has happened (going back to October ’06) it has dropped on day seven.
Now it hasn’t always been so bearish for day seven, as going back to ’90 the odds we’ll be higher today is 37%. Still, well below the 53% of the days that have been positive since ’90.
So, we very well could be due for a well deserved break soon. None the less, check out the 1- and 2- month returns after six straight up days for the SPX. By no means is this a sell signal and I’m guessing the overall strength will continue after some eventual consolidation.