Multiple 4% Declines

The S&P 500 has now declined more than 4% in two of the last three trading days, and below we highlight all prior occurrences since 1928. As shown, the last time we had two out of three -4% days was during the '87 crash. Prior to that, it hadn't happened since 1948. The majority of the occurrences were during the Great Depression, where 3% and 4% moves were commonplace. Overall, the average performance of the S&P 500 on the day following the last -4% day has been 0.85%. Over the next week, the average performance has been 4.94%, and it has been 6.43% over the next month. Following the last 4 instances, the S&P 500 has been up the next day every time, but just 50% of the time over the next week and month.