Three One Percent Down Days This Week
This week marked the first time since April 2005 that the S&P 500 was down more than 1% on three of the five trading days. We went back to 1980 and found other Monday-Friday periods where the index was down -1% on three trading days to see how the market has performed going forward. While there are no conclusions to be made to the upside or the downside, the absolute percentage changes in the right columns below highlight that we are in store for more volatility.
Tough to make conclusions but easy to spot that Oct 1987 black swan with the market down more than 20%. I'm not saying we have another crash coming but a big down open on Monday would not shock me.
Thanks for a great blog.
Posted by: Luka | July 28, 2007 at 03:46 AM
Can the Bespoke guys comment on what a great move it was by the regulators to get rid of The UPTICK RULE ??!?!? WTF were they thinking?
Posted by: One Way Stox | July 28, 2007 at 06:57 AM