Yesterday, the S&P 500 closed lower—snapping a rare 9-day winning streak. If that feels like a big deal, it’s because it is.
Historically, win streaks of this magnitude tend to happen when the market is in an uptrend, typically defined by trading above the 200-day moving average. But this streak occurred while the S&P was still below its 200-day—marking just the 7th time since 1950 that this has happened. The longest such streak? Eleven days back in 1990.
To add context, the last time we saw a 9-day win streak at all was in 2004—meaning a whole generation of investors has never seen this type of momentum firsthand.
So what happens next?
History suggests the aftermath of these “streaks below the 200” is mixed—returns tend to be muted, and follow-through isn’t guaranteed. Which begs the question: Is this a temporary rally within a broader downtrend, or a sign that the recent correction is behind us?
