Stocks did indeed unopen close their lows, trending lower through most of the session. By day's end, nosotros saw the seat out of stocks making novel 20-day lows across the NYSE, NASDAQ, together with ASE remain over 2200--remarkable given yesterday's corporation bounce.
I took a await at what has happened historically later we've had 3 consecutive days of 20-day lows exceeding 2000. Going dorsum to belatedly 2002, which is how long I've kept these data, nosotros discovery exclusively 39 instances of such weakness. The side past times side trading day, the S&P 500 Index (SPY) has averaged a hit of nigh 1% (24 up, xv down). I discovery no meaning upside or downside border later such a relief bounce.
What *is* especially noteworthy is that such weakness has tended to occur during periods of heightened volatility. The touchstone departure of side past times side 24-hour interval returns next 3 days of meaning weakness has been 3.63%, nearly 3 times the degree of the residual of the sample. Such heightened volatility was evident equally far equally twenty days out, doubling the degree seen during other periods inwards the market.
That suggests that, whether or non weakness is finished, the recent levels of heightened volatility may persist into side past times side week.
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