Wednesday, March 6, 2013

In The Aftermath Of Long Winning Streaks in SPX

In writing Thursday's post on the similarities between 2013 and 2011, I came across these analogues. In the past 20 years, SPX has risen 7 weeks in a row three times (2007, 2011 and 2013) and 8 weeks in a row three times (1997, 1998 and 2004).

In the charts below, the green arrow is the year leading into the strong winning streak. The yellow box is the period that immediately followed.

1997 and 1998: