A historic reversal

Stocks enjoyed one of the best reversals in history on Monday, especially the Nasdaq. But the S&P 500, the most benchmarked index in the world, enjoyed a notable reversal of its own. The S&P was off by more than 3% and traded to a 6-month low, before reversing all of its losses. We've highlighted the danger of relying on single-day price patterns many times, and this is no different. The sample size is tiny, but all equivalent reversals saw losses either 1 or 2 weeks later.