Election Day Relief?
Markets have now experienced a 9-day losing streak - something that has not happened since December 1980. Over the last 20 years the S&P 500 index has only recorded a seven-day losing streak on three separate occasions. The first was in 2008 after Lehman Brothers collapsed, while the other two were during Europe's 2011 debt crisis. We now have a fourth instance… plus two more days! Yikes!
If Friday's inverted hammer candlestick (SPX) is correct, equities are ready to rally. However, Lindsay's 222-day interval points to a "change of trend" as early as Election Day which would mean the decline of the last three months is not complete.