Data &
Technology
Research
Reports
Report Solutions
Reports Library
Actionable
Strategies
Free
Resources
Simple Backtest Calculator
Simple Seasonality Calculator
The Kelly Criterion Calculator
Sentiment Geo Map
Public Research Reports
Free Webinar
Pricing
Company
About
Meet Our Team
In the News
Testimonials
Client Success Stories
Contact
Log inLoginSign up
< BACK TO ALL REPORTS

Will the S&P break this trend?

Troy Bombardia
2020-03-25
While global markets rallied significantly on Tuesday, it's yet to be seen while this trend can be sustained. Thusfar the S&P has been unable to sustain even a 2 day rally.

The stock market's crash over the past month and a half has been intense. Every time the S&P goes up and bulls think "this is the start of the reversal!", stocks get monkey hammered the next day. Could this time be different?

The S&P 500 has gone 28 days without a sustained 2 day rally. This is one of the longest streaks of all time, exceeded only by the 1929-1932 Great Depression crash.

Aside from the 1930s, such a prolonged downtrend usually led to the S&P rallying over the next 3-12 months. But including the Great Depression era, this wasn't as bullish over the next 3-12 months. Any analysis that involves dates from the Great Depression usually isn't very bullish, since the 1929-1932 crash was so severe.

In the meantime, the # of +/- 2% daily swings in the past 22 days has matched prior records.

The only other times we saw this much volatility over the past 22 days came AFTER the S&P's medium term bottom was already in. This led to at least a double-digit rally over the next few weeks/months:

Here's what the S&P did in 1929:

Here's what the S&P did in 2008:

Bottom in, multi-week/month rally, then new lows.

Sorry, you don't have access to this report

Upgrade your subscription plan to get access
Go to Dasboard
DATA &
TECHnologies
IndicatorEdge
‍
BackTestEdge
‍
Other Tools
‍
DataEdge API
RESEARCH
reports
Research Solution
‍
Reports Library
‍
actionable
Strategies
Trading Strategies
‍
Smart Stock Scanner
‍
FREE
RESOUrCES
Simple Backtest
Calculator
Simple Seasonality
Calculator
The Kelly Criterion
Calculator
Sentiment Geo Map
‍
Public Research Reports
‍
Free Webinar
COMPANY
‍
About
‍
Meet our Team
‍
In the News
‍
Testimonials
‍
Client Success Stories
Pricing
Bundle pricing
‍
Announcements
‍
FAQ
Subscribe to SentimenTrader's free newsletter
Get weekly highlights from our expert analysis, product updates, exclusive promotions, and invaluable educational content straight to your inbox. Sign up today and elevate your investing knowledge.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
© 2024 Sundial Capital Research Inc. All rights reserved.
Setsail Marketing
TermsPrivacyAffiliate Program
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.