Weekly winning streaks since 1950 – All good things come to an end

S&P 500 and DJIA have racked up six consecutive weekly gains as of last Friday’s close. Historically, this feat is somewhat rare. S&P 500 has recorded 51 (including the current) weekly winning streaks of six or more weeks since 1950. The longest was 13 weeks in 1957. DJIA has recorded 45 (including the current) weekly winning streaks of six or more weeks over the same timeframe. DJIA’s longest streak was 14 weeks in 1965. DJIA and S&P 500 have both had concurrent weekly winning streaks 30 times of six or more weeks since 1950.

Looking at the two charts below that graph the average daily performance 30 trading days before and 60 trading days after, DJIA and S&P 500 typically declined a little more than 1% when past weekly winning streaks came to an end. When the decline abated the trend higher remained intact, but gains were at a reduced pace.