The week after a big Monday decline have usually been very positive



It was hard to find a bright side on Monday, where the Dow lost more than 600 points.

But there may be some relief coming if recent history is to be believed. In all but one case during the decade-long bull market, data shows that the S&P 500 bounces back from heavy Monday losses to end the week positive.

“Since the bull market began in March 2009, there have been 15 prior Mondays where [the S&P 500] declined by 2% or more,” Bespoke Investment co-founder Justin Walters said in a note.

The S&P 500 “has been higher on the following trading day 12 out of 15 times for an average gain of 1.01%. In the week after 2%+ declines on a Monday, [the S&P 500] has been up 14 out of 15 times for an average gain of 3.21%!”

Beyond the fact that stock market indexes generally go up over the long term, it’s not clear whether there is a fundamental reason to explain this phenomenon. It may well be a coincidence that bad Mondays are a strong indicator of a positive week. But the pattern generally holds as far back as 1993, according to Bespoke’s data.

“So whether you’re looking at just the current bull market or over a longer period of more than 25 years, the day and week after a big Monday decline have usually been very positive,” Walters said.

Source: CNBC

 Trader Georgi Bozhidarov

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy