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Five Charts that Show there is Nothing Unusual with Stock Market

Part of financial media and the usual group of permabear analysts should realize there is nothing unusual or irregular with stock market price action. In fact, it is well within normal historical bounds.

“Days” refers to trading days in the S&P 500 daily charts below from 01/02/1960 to 11/27/2019.

Chart 1: Number of days since a 6-day losing streak.

There has not been a 6-day losing streak in last 83 days. In comparison, in 2015 the count reached nearly 800 days without 6-day losing streak and in the 2000s uptrend it rose to more than 1600 days.

Chart 2. New all-time high count in a 252-day period.

Current value of the count is 24 and that is much below recent peaks and also way below the 90s peak.

Chart 3. Days since oversold (RSI(14) < 30.)

 

The RSI(14) has not dropped below 30 in the last 81 days. The is below the longer-term average of 132 days.

Chart 4. Number of days since a daily drop greater than 1.5%. 

There has not been a daily drop larger than 1.5% in the last 36 days but the longer-term average is 54 days.

Chart 5. Count of daily returns between -0.5% and +0.5% in a 252-day period.

The current count of daily returns bounded between -0.5% and +0.5% in a 252-day period is 137 and close to longer-term average at 132.There is also nothing here to suggest irregular/abnormal price action.


Charting and backtesting program: Amibroker

Data provider: Norgate Data

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