Friday, January 25, 2013

Winning Streak Hits 8 Days - A Higher High Ahead

$SPX has just completed an 8 day streak of up days. This is a considerable sign of strength and demand. After a pause, empirically, the market should continue to make new highs. In other words, winning streaks do not end with a notable top.

The chart below is from Stock Trader's Alamanc and shows the average daily performance (since 1950) following an 8 day or longer winning streak: