Nine Day Run
On Friday, the SPX finished higher for the ninth consecutive day and a cumulative gain of more than 6.5%. Even more impressive is the overall pattern. The daily chart shows nine straight higher highs, higher lows, and higher closes. Now that's an uptrend. Looking back 30 years, I could find just two prior occurrences of such an orderly nine day ascent (1990 and 1995). In both cases, the SPX was higher 10 and 20 days later. However, a look at the charts (below) suggests the next few weeks will be much choppier with opportunities on both sides of the market (for the short-term trader).
For those interested, I've summarized the forward results for the SPX following a streak of nine consecutive higher closes. Again, I limited the study to occurrences within the last 30 years.
Finally, I wanted to highlight a possible resistance point over the very near term. A measured move would suggest that trade above Friday's high will have little to no follow-through (at least until the above noted streaks have ended).
Remember past performance does not indicate future results.
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