This 23.67% move on $SPX is the highest without a 2% decline (on a closing basis) in the past 20 years. There are 229 green boxes on the 20-year ZigZag chart and this is the biggest one of all of them.
For context:
The biggest red box during the 2008 bear market was -22.8% in… pic.twitter.com/ZWJJru1goT
— David Settle, CMT (@davidsettle42) February 29, 2024
🏆 Today’s Chart of the Day was shared by David Settle (@davidsettle).
- The S&P 500 hasn’t had a -2% pullback (on a closing basis) since its October low, gaining +23.7% over 83 trading days.
- David points out that +23.7% is the largest gain for the S&P 500 without a -2% pullback in the past two decades.
- However, it’s not the longest. In a comment to The Chart Report, David explained – “The S&P 500 went 110 days without a -2% pullback in 2017/2018, 115 days in 2016 after the election, and 149 days in 2006 when the Fed stopped hiking rates.”
The takeaway: The current rally is starting to defy history, but bulls should welcome a mild pullback, as it would be a healthy reset.