As I discussed last week, the time between Christmas and New Year’s tends to be a very strong seasonal period. (And even through the 1st or 2nd trading day in January). Wednesday was only the 11th time since 1960 that SPX fell greater than 1% on a day during this week. The results table below shows how the market reacted the 1st ten times.
Over the next 2-5 days there appears to be a nice upside tendency. With all 10 closing up on at least 1 of the next 2 days the reliability appears solid, though on a fairly small sample.
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