Hickey and Walters (Bespoke) submit: The S&P 500 has been up each of the last five days. We went back to 1927 and found that this has happened 398 other times for the Index. It has gone up for a sixth day 213 times (or 53.52% of the time). The average next-day change following a five-day winning streak is 0.07%.
While this may not seem like much, it is four basis points better than the average change of all days (0.03%). The average five-day change following a five-day winning streak is 0.31% versus an average of 0.12% for all five-day periods. While a five-day winning streak might make it seem like we're due for a decline, it has actually preceded further short-term gains in the past.