The DJIA is entering this last full week of May riding a streak of five straight weeks of declines in what is the longest weekly losing streak for the index in just under eight years.  While the current streak is the longest in years, it is also notable due to just how mild of a losing streak it has been.  Over the five weeks in which the DJIA has been down, its total decline has been a mere 3.67%.  To put that in perspective, the average decline for the DJIA during its 64 prior five-week losing streaks since 1900 has been a drop over 10%, and the last time the DJIA saw a smaller decline during a five-week losing streak was over 40 years ago in 1976!

While there have been 64 prior five-week losing streaks for the DJIA, there have only been eight prior streaks where the DJIA’s losses during the first five weeks of declines were less than 5% (table below), and there have only been three where the decline was less than the 3.67% we saw over the last five weeks. As shown in the table, of the eight prior mildest streaks, the DJIA went on to see a sixth straight week of declines more than half of the time for an average decline of 0.65% (median: -0.45%).  For all five-week losing streaks, however, the DJIA saw an average gain of 0.35% during week six with gains just over half of the time (51%). Start a 2-week free trial to Bespoke Premium for full access to our research and interactive tools.

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