History Points to a Down Day for the S&P 500 Index (SPX)

The S&P 500 Index (SPX) is fresh off its longest daily win streak since June 2014, but a seventh consecutive day of gains is rare

Dec 12, 2016 at 9:43 AM
facebook twitter linkedin

The S&P 500 Index (SPX) notched its sixth straight daily win last Friday -- a first for the broad-market barometer since June 2014. With the SPX also fresh off a record closing high, stocks are trading lower this morning as oil prices skyrocket -- while history suggests a seventh consecutive positive day for the S&P is rare. In fact, according to Schaeffer's Senior Quantitative Analyst Rocky White, the S&P 500 Index has been positive just 25% of the time on the seventh day following a six-day winning streak since the 2009 bottom, and has averaged a loss of 0.2%.

The action has historically been pretty choppy going forward, too, per the chart below. Looking out one week after the S&P 500's six-day win streak, the index has averaged a return of 0.6%, and has been positive three-quarters of the time. This is better than the SPX one-week average anytime return of 0.3%, and "percent positive" of 59.6%.

Since 2009, the SPX has historically left its post-streak outperformance at one week, though. Specifically, when looking at the two-week return, the S&P 500 Index (SPX) has averaged a gain of 0.3%, versus an anytime return of 0.6% -- although the index is positive 68.8% of the time post-streak, versus 62.2% anytime. This historical underperformance is even more notable at one month, when the SPX has averaged a post-streak return of just 0.03%, versus an anytime return of 1.2%.

spx returns after six days up

Let us help you profit from market volatility. Target big gains in short order with a 30-day trial of Schaeffer's Weekly Volatility Trader!

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners