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Talk about a Manic Monday.
The turnaround in U.S. stocks on Monday, when the S&P 500
SPX,
erased a 1.7% decline to close 0.6% higher, was an unusual one.
According to Bespoke Investment Group, there have been only 56 days in which the SPY exchange-traded fund
SPY,
that tracks the S&P 500 erased an over 1.5% decline to finish up at least half of one percent, since the inception of that fund. And it was only one of 25 days in which it happened without at least two months since the prior one.
Bespoke Investment Group
Historically, these reversals aren’t bullish. The next day, the SPY on average slips by 29 basis points, and stocks are also negative a week later.
And while stocks are more positive in the months after, the typical gain is smaller than usual.
In European morning trading, U.S. stock futures
ES00,
NQ00,
were weaker.
