Short-term Persistence a Positive For the Intermediate-term

Monday marked the 5th higher close in a row. This kind of persistence coming off a low has almost always led to further upside over the intermediate-term. This can be seen in the study below.

Short-term returns were very choppy. Looking out a month or so the results strongly favor the bulls. In last night’s Subscriber Letter I listed all the instances. What was interesting is that there was positive representation from every decade.