Stocks Continue to Show Resilience

Although the S&P fell 1.6% yesterday, with just a fractional decline today, stocks are once again showing some resilience.

That resilience has been quite evident since the rally picked up steam at the beginning of September. Declines of more than 1% have been few and far between over the past 6 months. In fact, since September 1, over the course of 126 trading days, the S&P has been down more than 1% just 9 times (that’s less than 10% of the time and including yesterday).

More importantly, the markets have avoided stringing together consecutive days of hefty losses during this 6-month rally.

>> S&P Energy Sector up 51% in Six Months

On the day after those 9 declines, the S&P has managed to turn in a gain the next day more than half of the time (5 times to be exact). On the other 4 times, the index has posted only very small losses on the day after its big drop.

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