Loading ...The problem, as Cinko notes, is that 2020’s pandemic-induced economic crash and the fastest recovery ever from a bear market might not fit into any one of the above buckets (especially with the Fed now explicitly egging on the market). It also means that, according to the Bloomberg strategist, “history is of no guide as to what to expect next in our current situation. Though I suppose one thing is clear from the chart, especially since 2010 onward: The easy ride higher is over for the time being, and churning price action is likely in store for investors until the next direction (up or down) becomes clearer.“This week we had 3 days where the S&P 500 closed positive and the advance-decline line was negative. Since 1995, there was only 1 other week where this occurred in June 1997. However, this week is not comparable in our view, as the negative a/d numbers were pretty close to zero (-6, -37, -35) that’s vs. (-161, -193, -61) this week. This week’s a/d numbers were very significant in terms of size relative to history. Since 1995 there has been 287 days when SPX closed positive and the a/d was negative. However, Thursday’s -193 was the 3rd lowest ever. Tuesday’s was #7 on the list.
what is especially notable is that the last time we had a cluster of such negative A/D days with the S&P closing at all time highs was just days before the dot-com bubble burst.
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