– weekly drawdown -2% or worse? Check
– weekly return between 0-1%? Check
– weekly close within -10% of ATH? Check
T+3 the S&P 500's higher 17 of 21 for 1.70% on average.
57% of the time she never looks back.
Call this a good omen, not a guarantee. pic.twitter.com/IF7boSlnJQ
— Steve Deppe, CMT (@SJD10304) September 24, 2021
Today’s Chart of the Day was shared by Steve Deppe (@SJD10304). The week started off on an ugly note, with the S&P 500 selling off more than 2% intraday on Monday. However, buyers quickly stepped in and we actually managed to close positive on the week by 0.51%. Steve points out that similar price action has historically led to positive forward returns for the S&P 500 in the following weeks. Of course, we can never expect history to repeat exactly. But stats like these are valuable because they put the tape in context, and can give you an idea of how the market behaves under similar conditions.