By Graham Summers, MBA | Chief Market Strategist
The S&P 500 has now performed back to back “90% up days”.
A 90% up day is a day in which 90% or more of the stocks that comprise a stock market index rise. Historically, this is a very bullish development. And back to back 90% up days are even better! In fact, back to back 90% up days like the ones the S&P 500 staged on Friday and Monday are usually a hallmark of a market bottom!
As Ryan Detrick has noted, since 1980, two consecutive days with 90% advancing issues in the S&P 500 have resulted in positive returns 12 months out ~91% of the time. Even better, the median return over that time period is 16.5%.
See for yourself:
Put simply, a major metric is signaling to us that the odds greatly favor stocks have bottomed . The odds favor a rally, NOT a crash.
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Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
