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It Has Been 928 Days Since the S&P 500 Had a One-Day 2% Decline


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#1 Swiss Trader

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Posted 27 January 2007 - 01:52 AM

We recently received a request to look into the length of time it has been since we had a one-day 2% decline on the S&P 500. It has now been 928 days since the S&P 500 had a one-day 2% decline. The last one was on May 19, 2003 when the Index fell 2.49% on the day. This is the longest streak of its kind for as far back as we can download daily prices. Not that we're superstitious, but knock on wood.


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#2 caspary

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Posted 27 January 2007 - 11:15 AM

looks like nature of markets has changed. There are far more people shorting and far far more shorting instruments like shorting ETFs, more people trading options (puts), futures etc. IMHO I think what this means is that whenever markets look like they are going down, many people pile into the short side and thsi puts the break on the drop. Why? because I think the markets starts taking out the stop orders above the short positions and this escalates or takes a life of it's own. This could explain why since 2003 for example much of the bad news that comes into the market is discounted quickly and market just takes off to the upside. of course i could be wrong and maybe a monster 5% drop is on the way... <_<