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The S&P 500 has gone 43 trading days without a 1% daily move, up or down. which is the equivalent of two months and one day in trading days.
During this stretch, the S&P has gained more than 4%, and it has notched a 52-week high recently as well.
Since 1952, there were nine other precedents. All of these went 42 trading days without a 1% move, all of them saw the S&P gain at least 4% during their streaks, and all of them saw the S&P close at a 52-week highs.
***There was consistent weakness a week later, with only three gainers, and all below +0.5%. ***After that, stocks did better, often continuing an Extraordinary move higher.
Charts can sometimes give us a better nuance than numbers from a table, and from the charts we can see a general pattern - ***if stocks held up well in the following weeks, then they tended to do extremely well in the months ahead. ***If stocks started to stumble after this two- month period of calm, however, then the following months tended to show a lot more volatility.
We already know we're seeing an exceptional market environment at the moment, going against a large number of precedents that argued for weakness here, instead of the rally we've seen. If we continue to head higher in spite of everything, these precedents would suggest that we're in the midst of something that could be TRULY EXTRAORDINARY.
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