If the S&P 500 ends the day lower today, it will mark seven straight days of declines. This 'event' has only occurred three other times in the last 20 years… and each coincided with a major financial crisis…
“It's different this time”
As Bloomberg reports, the index's longest-ever run of losses was eight days, matched at the height of the financial crisis in October 2008. The S&P 500 started falling on Monday September 29 and saw lower closes at the end of every trading day until October 10, in what was its worst week in history.
The next was a seven-day losing streak that went from July 25 2011 through to August 2, at the height of the European debt crisis and just before S&P downgraded its rating on U.S. sovereign debt.
The index next seven-day run of losses owed to spillover from the crisis in Europe, as the cost of insuring European government debt surged to a record. Stocks began their slide on November 16 2011 and didn't move higher until November 28.
The latest tumble has been blamed on uncertainty surrounding the presidential election in the U.S. that is less than a week away.
So all eyes will be glued to 2,111.72 at today's close to see if the trend holds. Expect a herculean VIX crush to ensure this does not happen.