In yesterday’s Stat Of The Day, we mentioned that on Friday and Monday, the S&P 500 fell at least 1% each day. This was the first time that has happened since the low in October 2011. Since 1960, this phenomenon has occurred 68 times.
As the chart illustrates, many of these events happened during bad markets. Out of 68 occurrences, 58 of them came during either long cyclical bear markets (i.e., 1973-74, 2007-09) or during intermediate-term corrections (i.e., ‘87 crash, 2011). It should be said, though, that many of the occurrences marked the end of such bad markets.
For more about the negative implications of down Friday-Monday’s, Stock Trader’s Almanac has done extensive work.