Five Down Days

Five consecutive down days has been a pretty reliable indication of a short-term bottom. Over the last 30 separate occurrences stretching back to 1996, only three failed to lead to a higher S&P close (above the setup day’s close) within the next two sessions…

S&P500 Closes Lower Five Consecutive Days
06/07/11… S&P500 +0.3% two days later
07/02/10… S&P500 +0.5% next day
03/03/09… S&P500 +2.4% next day
02/20/09… S&P500 +0.4% two days later
10/07/08… S&P500 -8.7% two days later
01/22/08… S&P500 +2.1% next day
02/27/07… S&P500 +0.6% next day
03/24/04… S&P500 +1.6% next day
02/24/04… S&P500 +0.4% next day
01/22/03… S&P500 +1.0% next day
12/05/02… S&P500 +0.6% next day
09/03/02… S&P500 +1.8% next day
04/26/02… S&P500 +0.1% two days later
02/07/02… S&P500 +1.5% next day
09/21/01… S&P500 +3.9% next day
05/11/01… S&P500 +0.3% next day
02/23/01… S&P500 +1.8% next day
11/13/00… S&P500 +2.4% next day
10/12/00… S&P500 +3.3% next day
09/26/00… S&P500 +2.2% two days later
05/23/00… S&P500 +1.8% next day
04/14/00… S&P500 +3.3% next day
10/15/99… S&P500 +0.5% next day
08/04/99… S&P500 +0.6% next day
04/19/99… S&P500 +1.3% next day
03/01/99… S&P500 -0.7% two days later
12/12/97… S&P500 +1.1% next day
12/16/96… S&P500 +0.7% next day
12/06/96… S&P500 +1.4% next day
06/14/96… S&P500 -0.6% two days later

Categories : Archived Intraday Commentary, Intraday Commentary

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