Seeking Alpha
Profile| Send Message|
( followers)  

Since March 9, 2009 there have been 18 days where the S&P 500 declined 2% or more, yesterday's being the most recent. Below we constructed a composite chart of the day following the 17 previous occurrences. As shown, historically the market has maintained a sideways pattern early followed by a late day rally. After previous occurrences the market has posted a 0.27% gain on the day and closes at the high.

click to enlarge

Source: S&P 500 Performance Following a -2% Day