Almanac Trader — How Low Volatility Streaks End Matter!

Of 175 past S&P 500 low volatility streaks (closing with
less than +/- 1%) since 1950, 108 ended with the S&P 500 declining 1% or
more. This is 61.7% of the total and explains why, on average, all streaks
tended to be followed by S&P 500 weakness. However, when the 175 past
streaks are separated by how they ended, the difference in S&P 500
performance is eye-popping. Streaks that ended with a gain were bullish while
those that ended with a loss were generally bearish.