The Qs streak of negative closes extended to a 7th day which is a rare event, as there have only been 8 uninterrupted declines lasting 7 days or longer:
Jan 30, 1990, followed by a 12-day 6.28% rally
Nov 12, 1997, followed by a 12-day 10.12% rally
May 18, 2006 (8-day losing streak); the swing bottom came in 3 days later, and the Qs bounced up for 6- days and a 3% gain.
June 13, 2006 (8-day losing streak) followed by a 2-day rebound and a gain of 3.75%. The market bottomed a month later.
Sept. 9, 2008, followed by a 2-day rebound, 2.7% gain.
Oct 10, 2008 (8-day streak) followed by a 1-day 12% rebound. The index bottomed a month later on Nov 20th.
July 2, 2010 (11-day losing streak) followed by a 8-day 7.3% rally
May 18, 2012 (9-day losing streak) followed by a 6-day 3.37% rally. The index bottomed three days later.
That’s a 6-day 6% bounce average.
There are certain similarities with August '15, so Monday is the odds favorite to mark a swing turning point.
We mentioned yesterday that 109 of the SP500 and 27 of the NDX 100 stocks were on a 6-day losing streak. After Friday, a few of them have stopped declining and may present a good swing buying opportunity once the indices follow suit: TWC, TSN, NWSA, GIS, EA, MSI, CHTR and VRSK.