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There have now been 12 days during this bull market where the S&P 500 declined by 2% or more. In the table below, we highlight that the average next day change is +62 bps, but the average absolute change of 125 bps indicates that today could be another volatile day.

click to enlarge
2%decline day after

We also looked at the 20 best and worst performing stocks in the S&P 500 on 2/27 to see how they performed the following day. As shown, the 20 stocks that went down the most that day were up an average of 1.29% the next day versus an overall average of 0.44% for all S&P 500 stocks. The stocks that held up the best on 2/27 were actually down an average of 25 bps on the following day, even when the index was up 56 bps.

So if you're looking for ideas today, the worst performers on 2/27 (a similar decline to today's yet more dramatic) outperformed the next day while the best performers underperformed. For your convenience we have also listed the worst and best performers in the S&P 500 yesterday.

2/27 performers

yesterday\'s best and worst

Source: Another Volatile Market Day? Look for Yesterday's Worst to Outperform