$SPX - Consecutive Up/Down Days
The S&P-500 ($SPX) is up for five consecutive days (close - previous close) as of the close on Friday, November 23. Below is a 2-year back test of how the $SPX performed the following trading day.
Disclaimer: I realize 2-years is not a large enough sample size to base trades off. Small sample back testing is provided to give traders an idea of probabilities.
Nine observations with 78% of them being negative the next day. Here are the next day results:
Two days positive, most days slightly negative, with two days being down over -1%. Nothing too massive though. Now let’s look out four days after the S&P-500 had five consecutive up days:
Besides a four day stretch in 2011 (-7.11%), all are slightly positive. Something to keep in mind.