Market Breadth Data******************************

Sunday, November 06, 2016

$QQQ Pattern and Trend

Friday marked the 9th day of consecutive declines for the Qs. In their history, there have been only two other consecutive declines of similar duration or longer.

Therefore, it's worth repeating what we observed at the beginning of the year following a 7 day consecutive decline:

Here's what happened following those rare uninterrupted declines lasting seven days or longer:
7-day decline ending Jan 30, 1990, followed by a 12-day 6.28% rally
7-day decline ending Nov 12, 1997, followed by a 12-day 10.12% rally
8-day decline ending May 18, 2006; the swing bottom came in 3 days later, and the Qs bounced up for 6 days and a 3% gain.
8-day decline ending June 13, 2006, followed by a 2-day rebound and a gain of 3.75%. The market bottomed a month later.
7-day decline ending Sept. 9, 2008, followed by a 2-day rebound, 2.7% gain.
8-day decline ending Oct 10, 2008, followed by a 1-day 12% rebound. The index bottomed a month later on Nov 20th.
11-day decline ending July 2, 2010, followed by a 8-day 7.3% rally
9-day decline ending May 18, 2012, followed by a 6-day 3.37% rally. The index bottomed three days later.
That's a 6-day 6% bounce average.
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