Dow 7-Day Losing Streaks

Yesterday we noted that the percentage of stocks in the S&P 500 trading above their 50-day moving averages was down to levels not seen since the late 2008 collapse.  Now the Dow is on a 7-day losing streak, which also hasn't happened since late 2008 (10/9/08).  There have been 32 prior 7-day losing streaks for the Dow over the last 50 years.  And just because the index has been down doesn't mean it's due for a rally.  Historically the index has been essentially flat on day 8, and averaged a decline of 0.29% over the next week.  The median change over the next week is even worse at -0.92%, and gains over the next week have only occurred 31% of the time.  Back in October 2008 when the 7-day losing streak occurred, the Dow went on to decline 1.49% on day 8, but it was up 4.66% over the next week.