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Thursday was the third consecutive session with over 400+ advancing issues among S&P500 components. That’s very unusual action, with only ten occurrences since 2009 (zero prior). I’ve listed them below, beginning with the date of the third 400+ advancing day and followed by the S&P’s performance over the next week and the max drawdown during that week. What I found most noteworthy is that when this pattern led to upside follow-through over the following month, the initial pullback during the first week was very shallow. In 6 of the 10 occurrences, the maximum intraday drawdown during the first week was less than 2% and the S&P was higher one week later. All six of those occasions led to further upside over the next month ($), averaging a gain of 5.3%. For this latest pattern to qualify on those counts, the S&P would need to hold above 4323 intraday during the next five sessions and close above 4411 next Thursday (March 24th)…

SPX 400+ Advancing Issues Three Consecutive Sessions
03/17/22… SPX ??? one week later
06/30/16… SPX +1.5% one week later, max DD 1.2%, +3.4% one month $
02/17/16… SPX +0.2% one week later, max DD 1.9%, +5.9% one month $
12/23/15… SPX -1.0% one week later, max DD 1.0%, -7.8% one month
10/21/14… SPX +2.3% one week later, max DD 0.7%, +5.5% one month $
06/27/13… SPX +1.2% one week later, max DD 0.8%, +4.5% one month $
10/06/11… SPX +3.3% one week later, max DD 1.3%< +7.6% one month $
09/15/11… SPX -6.6% one week later, max DD 7.9%, +1.3% one month
09/03/10… SPX +1.6% one week later, max DD 1.2%, +5.1% one month $
07/26/10… SPX +1.0% one week later, max DD 2.4%, -5.7% one month
01/02/09… SPX -4.5% one week later, max DD 4.7%, -10.0% one month

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