S&P 500 Index - From record high to a close below 200-day moving average within 20-days - What happens next

Probability Trader

www.probabilitytrader.com

S&P 500 Index - From record high to a close below 200-day moving average within 20-days - What happens next? We note that the S&P 500 Index has moved from a record closing high (18th September) to a close below its 200-day moving average (13th October) all within a 20 trading day interval. This type of market behaviour is somewhat strange having only occurred on 9 previous occasions since 1950 (non-overlapping - at least 20-days between each signal). Intuitively, we thought that such a swift mood change may have had negative implications for the market moving forward. Albeit, a little choppy over the 5-day to 10-day period & taking note of the limited sample size, 20-days following this particular pattern the S&P 500 Index managed an average gain of 1.65% with a 7 from 9 win rate. Full data analysis & tables can be viewed at (VIEW LINK)


Probability Trader
Quantitative Research Analyst
www.probabilitytrader.com

Probabilitytrader is an independent financial research group that provides objective analysis for traders of Global Stock Market Index CFDs, ETFs, Futures, and Options. Our forward looking analysis covers timeframes as short as 1-day to as long as...

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