“Among S&P 500 index components, 50 stocks triggered a weekly selling climax, as they hit a 52-week low during the week then reversed enough to close higher than the previous week. That ranks among the highest number in 20 years, and tends to precede positive returns.
There have been 9 other times in the history of S&P 500 futures when they suffered back-to-back six-month lows while the 200-day average was sloping higher, then added a follow-through upside day of at least +1%. There was often shorter-term volatility following these reversals, but by six months later all 9 were higher with an average return of +17%.
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