S&P 500 Generally Positive Following -400 A/D Days

Includes: IVV, SPY
by: Bespoke Investment Group

Hickey and Walters (Bespoke) submit: In yesterday's trading, 30 stocks in the S&P 500 finished up, 469 finished down, and one was unchanged. The net A/D line for the day was -439, which marked the lowest reading since June 7th.

Looking back over the current bull market, there have been 30 other days where the one day A/D reading was below -400. Going forward, the market has been up over the next day and week 54% of the time with gains of 0.08% and 0.80%, respectively. As shown below, the market has reacted very positively on the day following the last five -400 readings.

click to enlarge
a/d readings