The market was bailed out once again by another “V-bottom”. Last week’s version was the 10th since March 2013. Over the last 62 years this type of upside reversal pattern has only happened 38 times. Yes, the market’s behavior has changed dramatically over the last year. The question is, what will come next? More here from Dana Lyons: http://jlfmi.tumblr.com/post/101416437690/the-v-bottom-is-still-in-fashion
After closing at its daily low on Tuesday, over 5% below this month’s high, the S&P 500 had vaulted 4.2% by Thursday’s settle. That is the biggest two day gain for the index since December of 2011. Back then stocks had entered the fourth quarter well below(9.5%) the highs for the year. In August of 2011 the market was slammed. The S&P 500 fell nearly 15% during the first seven trading days of the month. By early October the weekly MACD indicator reached an oversold level not seen since the 2009 major bottom. The stage was set for a powerful rally. A far different picture developed this week. The S&P 500 is closing out the third year of a powerful bull trend that has powered it 64% higher from the 2012 close. This year the index appears headed for a 14% gain and is now up 13% from the October 15th spike low. Clearly there are a completely different set of drivers powering the massive two day gain this week versus the move back in 2011.
More here from Bloomberg.com: http://www.bloomberg.com/news/2014-12-18/u-s-stock-index-futures-signal-s-p-500-to-rally-for-second-day.html
-Last week was only the second time in history the S&P 500 gave back the prior five straight weeks of gains. The other time this happened was back in 1969.
-Last week’s drop of 3.52% is the worst decline in 135 weeks, since the week of May 14th, 2012.
-Since 1950 the biggest weekly decline for a year has come in December only one other time, back in 1975.
Hat Tip: paststat.com
From Bob Pisani: