• What Happens When The SPX is up 6 Days In A Row?

    by  • December 12, 2012 2:37 pm • Breaking News, Broad Market Analysis, Lighter Side, Quick Hits • 0 Comments

    We are looking at one impressive near-term rally, as the SPX is due to close up for the sixth day in a row.

    What does this mean?  I brought in Rocky White, America’s favorite quant, to help me out and here’s what we found.  As expected, after a run like this you can expect some near-term trouble.  In fact, we’ve seen 23 streaks of six up days and incredibly the last 12 have ended the next day!  The last time we had a streak like this was 8/10/12.

    Here are the results after such streaks.  Interestingly, the overall returns as you go out 1-week or more aren’t all that bad compared with the typical returns over this period.  This could be a sign that strength begets strength, or at the very least this much strength in short bursts isn’t longer-term bearish.

    Lastly, here’s the list of all the previous six day winning streaks and the results after the streak.  Again, check out the streak of 12 straight losers after six up days.  Simply amazing really.  Also looks like the longest winning streak was nine days clear back in ’04.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


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