Historically, if you see a trading day without any stocks hitting a new low, this has been bullish for the market going forward. On average, the S&P500 has rallied 10% 126 days after such an event, or 16.6% 252 days later as shown below.
One of these peculiar trading days occurred back on March 26th. This worked out well for those who acted on it. Moreover, we just had another day like this on August 28th. Good news?
Inevitably, bulls will view this as positive for the market going forward while hardcore bears will point to it as a sign of irrational exuberance.
Still, note that we didn’t have a single trading day of this type during the tech bubble…