Fun little factoid from my friend Jon Krinsky at MKM Partners about yesterday’s bludgeoning:
Among the many extreme breadth readings yesterday was that 499 of the S&P 500 components closed negative. Granted there are now 502 stocks in the S&P 500, but that is still the 2nd highest reading going back to 1996. The only higher reading was on 8/8/11, which saw 500 stocks down, and the next day SPX was +4.74% and 5 days later +7.60%. We looked at all readings greater than 490, and avg. returns were:
1 day +0.58%
2 days +0.80%
3 days +1.14%
5 days +1.64%
10 days +0.97%
We should note, however, that SPX was positive only 13 of 23 times looking one and three days out.
Josh here – So yes, combined with the extreme bearish sentiment I discussed this morning, there is some hope of another face-ripping bounce. But do you buy into it or sell into it?
Follow Jonathan Krinsky on Twitter
Read Also:
499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM
RT @ReformedBroker: 499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM
RT @ReformedBroker: 499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM
Good odds this is the bottom, though we might bounce around this level for a month or so. via @ReformedBroker
http://t.co/ixPWiSlCa5
When 499 of the S&P 500 fall in a day http://t.co/O8wVUJJ7kH #Uncategorized @ReformedBroker
RT @ReformedBroker: 499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM
When 499 of the S&P 500 fall in a day http://t.co/PmyfUZsYeO
RT @ReformedBroker: When 499 of the S&P 500 fall in a day http://t.co/PmyfUZsYeO
RT @FredPGabriel: When 499 of the S&P 500 fall in a day http://t.co/Kjgy6rFKDi
RT @ReformedBroker: When 499 of the S&P 500 fall in a day http://t.co/PmyfUZsYeO
RT @ReformedBroker: 499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM
Interesting data from @ReformedBroker … What happens in the days following an extreme broad drop like yesterdays?
http://t.co/3eke954tJo
RT @ReformedBroker: 499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM
RT @ReformedBroker: When 499 of the S&P 500 fall in a day http://t.co/PmyfUZsYeO
RT @ReformedBroker: 499 stocks in the S&P 500 fell yesterday!
http://t.co/HLVxj9FMOi
via @JKrinskyMKM