Today's Consumer Confidence Report Very Possibly Bullish for the S&P 500

Aug.29.06 | About: SPDR S&P (SPY)

Markets sold off this morning after the Consumer Confidence report released at 10 am showed a month over month drop of 6.92%.

Below is a chart of Consumer Confidence vs. the S&P 500 since the start of the bull market.

There have been five larger drops since October of 2002, and the S&P went up the following month 3 of the 5 times. The average gain of the index in months following Confidence drops of 5% or more is 2.49%.

click to enlarge