📈 This Has Only Happened 5 Times Before...

And each time it was bullish!

Pullback Recovery Data

We established yesterday that the equal weight S&P 500 index ($RSP) has been outperforming the S&P 500.

We also know that over the last couple weeks we saw a rapid selloff followed by a rapid recovery.

Below is some data that shows that the speed of recovery that we have seen has only happened five times before in history and it shows you the results the previous five times.

You can see that a month later, every other time the market has been higher. And that continues and grows as you move further out.

What is important to note is that despite this only being a sample size of five, we do have statistical significance in the % change 2 months later and beyond (this is denoted with the green squares over the z-scores.

So the short of this is that based on what has recently transpired in the market, we have a statistically significant expectation that the market will be higher 2 months from now.

Do with this information what you will but I found it very enlightening and wanted to share. I talk through how I am using this data in the video below: