Almanac Trader — S&P 500 performance after past 9-day or longer…

Today (May 2) S&P 500 logged its first 9-day winning streak since November 2004. This will be just the 43rd time S&P 500 has been up nine days in a row or longer going back to 1930. Compared to past 9-day streaks, the current streak’s gain of 10.25% stands out as the largest. In fact, it is the largest gain of any streak, lasting nine or more trading days. Unfortunately, when the current daily winning streak comes to an end, S&P 500 performance over the next three months is not likely going to be as robust.

S&P 500 performance following the 42 previous 9-day and longer daily winning streaks tended to be weaker than average, especially during the following month. Past winning streaks appear to have pulled performance forward. One week after past streaks ended, S&P 500 was mixed with an average decline of 0.10%. Two weeks later there was modest improvement with gains occurring 57.1% of the time. S&P 500 performance continued to gradually improve over the next month, three months, and 1-year.