Today was the 6th consecutive down day in the markets…
As a follow up to yesterday’s Fed remarks, the last time the markets saw 6 consecutive days of losses was back in February 13-23, 2009, which preceded the market lows of March 2009 (when the S&P hit 666). It was at that point the Fed started QE1.
The last time we had 5 down days in a row was in August of 2010, leading to the emergence of the bearish technical Hindenburg Omen (i.e. the simultaneous presence of many new stock highs and lows signaling trouble), and consequently the beginning of QE2.
The Fed did not indicate QE3 yesterday, but Bernanke did specify that “monetary policies are still needed.”