While the S&P 500 is a bit less than 1% from all-time highs and hasn’t made a new high in a month, the current drawdown is extremely small by historical standards. In the chart below, we show streaks of days where the benchmark index has avoided a decline from all-time highs of at least 5%. Each streak starts the day the index gets back within 5% of all-time highs after declining from them. During the current bull market, there have been a number of such declines, most recently around the Brexit vote in June of last year. Since then, however, the index hasn’t moved down more than 5% from record highs. That streak of 303 trading days and counting is the 4th-longest on record, matched only by streaks ending in 1965, 1994, and 1996. It’s worth noting that long streaks without large declines don’t necessarily result in huge gains; for instance, the 1994 streak saw a 14.2% gain. The 1965 streak lasted 4 months longer than the current one but only resulted in gains slightly better than the current streak’s 23.1% move higher.
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