Wednesday, December 3, 2008

5% Drops Revisited

About a month ago I showed how the S&P 500 has performed following days where the market dropped 5% or more. In most cases such a strong reaction was an overreaction and the market closed above the close of the 5% drop day shortly thereafter.

Since I showed that table a month ago we have had SIX more 5% drops. Five of the six saw the same pattern with some kind of bounce in the next few days. Below I’ve updated the table which lists all 5% drop days and whether they closed above the 5% drop day close in the next week.
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2 comments:

  1. jgpietschAugust 8, 2011 at 5:37 PM

    Little confused by wording, do you mean 5% drop recouped, or simply that next day close above the 5-down day close?

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  2. Rob HannaAugust 8, 2011 at 5:46 PM

    Not recouped. Just how long it took to close above the close of the 5% down day.

    ReplyDelete