From the desk of Steve Strazza @Sstrazza
Our Top 10 Charts Report was just published.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
A Record-Setting Slide
The S&P 500 just booked its seventh consecutive down week. This is only the fourth time in history that the index has registered so many consecutive losing weeks.
When we look back at the last three instances, the forward returns are mixed. The last time we experienced so many consecutive losing weeks was in the middle of the dot-com bubble crash in 2001. This was not a good time to buy stocks.
On the other hand, when this happened back in 1970 it coincided with a major bottom. As for the instance in 1980, the forward returns were excellent, but a multi-year bear market followed soon after.
While this stat doesn’t give us an actionable signal over any material timeframe, it does suggest that markets are due for a relief rally.