Breaking Down the Nasdaq's 7-Day Losing Streak: More Losses Expected

The tech-heavy Nasdaq Composite is down 7 consecutive days -- the 37th time this has happened in the index's history. One would think that 7 down days in a row would be met with at least a short-term reversal, but the average performance of the index on day 8 is actually -0.38%. The average performance of the Nasdaq in the week following a 7-day decline is 0.06%.

Compared to an average gain of 0.21% over all 1-week periods, the week following 7 down days in a row has historically been weaker than normal. Unfortunately, this probably isn't news that bulls want to hear.

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