Big Comeback in Stocks Today - Is it a Good Sign?

The stock market come back big from being down even bigger.  A lot of talk that this is a positive sign for the market, so I wanted to test it.

The $SPY finished just under 2.% off the lows today, so I ran a sample of days where the index finished 1.8% or better above the low for the day.  You could dice it a lot of ways, but this is the one I chose.

It's happened a lot of the last 15 years,  I looked at what happened the following day or days and didn't really see a major trend.  Some days were up, some down and some barely moved.  In looking at the list, I saw it happening a lot in 2008, a very bad year for stocks.  So, I added up the numbers per year.

2015	3
2014	3
2013	2
2012	6
2011	21
2010	13
2009	40
2008	61
2007	7
2006	2
2005	1
2004	2
2003	23
2002	49
2001	40
2000	37
1999	20
1998	27
1997	24
1996	10
1995	2
1994	3

As you can see, the worst years are bear market years, 2008-9 and 2000-2002.  Having a lot of these is a sign of volatility and a bad thing. I can't say what one day will bring, but a lot of them are not good. 

Best of luck trading.