What happens next, statistically speaking? Bespoke Investment Group looked at the data, made a chart and found that, on average, "two strong up days have typically been followed by slightly weaker-than-normal performance."
Two Days of 1.5% Gains
Excerpt: "For just the 22nd time in the last ten years, the S&P 500 has rallied more than 1.5% for two days in a row. Below we highlight the prior times it has occurred along with the change in the index over the next day, week, and month. As shown, the last time it happened was March 24th, 2007. In the week following that 2-day rally, the index was down 2% over the next week, but up 2% over the next month." Full paragraph/chart here.
Note: There seems to be quite a bit of variability in the data. I think this is one of those cases where the chart doesn’t give you an answer, which in itself may be worth noting, along with tomorrow’s GDP release which should move the market one way or another. – Ilene
