Today’s Chart of the Day was shared in a note by Pivot Analytics (@pivotanalytics). Stocks have gone vertical this week. The S&P 500 logged its 4th consecutive gain of 1% or more. Needless to say, this price action is quite rare. Before today, this has happened 11 times since 1930 and only 3 times since 1938. Taking a look at the forward returns, the next day has been positive only 9% of the time! Looking further out, things start to get more bullish. One week later, the index has historically been positive 73% of the time for an average gain of 3%. One month later, the index has also been up 73% of the time for an average gain of 10%. In other words, the rally may be running out of juice in the very near-term, but longer-term, this sort of momentum is bullish.
