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Stocks end eight day win streak. What lies ahead?

| November 10, 2023

The stock market S&P 500 saw an eight day win streak end this week.  The run was the longest since 2021.  After seeing stocks gain so much so fast we might be concerned the market is petered out and will fall back maybe as fast. 

But this research piece by Stock Traders Almanac points out otherwise.  After a long winning streak, there tends to be more gains on average over the next few months.  This ties into a technical notion that strong gains and a stock market tends to lead to more strength and more gains.  While dispelling the notion that a long win streak is some kind of topping action or indicative of a market that is tired and petered out. 

It would be expected the market needs a breather after an eight day run so a consolidation or pullback will be no surprise.  Surely there will be some down days and maybe more volatility.  But the historical evidence suggests good news that maybe the market will keep making some gains into the end of the year.