In the movie Strange Brew, Bob and Dough McKenzie made famous the term "steamroller." In our world, Boo just put together a three day "steamroller" of his own.
Today's charts are intended to show the rarity of this decline and give us a glimpse of what happened in the past. The SP futures posted a new 100 day high close on Friday (what a distant memory that is) and then closed below the prior day's low for three consecutive days with a cumulative loss of at least 3%. This has only happened on four prior occasions and the charts are listed below. I've circled the four day pattern and highlighted the fifth day (which corresponds to today). The next day closed higher in three of the four. Given the lower prices overnight, it's important to note that only one of the four opened lower and that day closed with the greatest gains. As always, past performance does not indicate future results.
Remember that today is the roll date for the equity futures contracts. The SP futures will trade the June contract today (SPM). On the downside, the SPM will fill a gap from Jan. 2 at 1108.10 and will retrace the 2003 close with trade to 1109.80. Keep that in mind as the overnight prices flirted with those levels.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter