Market Overview
In 1987, U2 released a song titled “Running to Stand Still.” Although the song describes Dublin’s heroin epidemic in the 1980’s, the title could also describe the movement of the stock market through the first quarter of the year. The market has experienced heightened volatility, yet the S&P 500 finished the quarter up only 0.44%, while the Dow was -0.26%. The S&P 500 traded near an all-time high on March 2nd, and then subsequently fell 2.5% the following week. From February 18th through March 30th, the S&P 500 failed to generate two consecutive positive trading days. This 28 day stretch is extremely rare for the market, but offers some promise. The last 6 times the market has experience a streak of 25 days or longer without back-to-back gains, the market has averaged 2.77% for the 1 month following the end of the streak.
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