A Look At S&P 500's Longest Losing Streaks

Includes: SPY
by: Scott Krisiloff, CFA

The end of September marked the 5th straight monthly loss for the S&P 500 (NYSEARCA:SPY). And if October 1 was any indication, it looks like the streak could extend into October.

Before we get too negative though, this is only the 7th time that the S&P 500 has declined for 5+ straight months since 1957. Of those 6 other times, there are only two in which the streak extended beyond 5 months, and this is already the 2nd largest percentage decline caused by any individual streak.

The data certainly seems to suggest that we may be due for a reprieve. The good news is that immediately following the streak there tends to be a nice sized rally. The average gain in the first month following a 5+ month losing streak is 6.77%

(Click chart to expand)

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.