Something highly unusual, and potentially quite bearish, has just happened to the stock market.
On Monday, Tuesday and Wednesday, the S&P 500 closed at the lows of the day in three-straight sessions.
It is rare for stocks to close at the dead lows on any given day. Until Monday, it only happened once this year, on March 10.
Now that it’s happened three days in a row, some traders are worried.
“Traders like to watch the tone of the close,” said Scott Nations of NationsShares. “On Monday it meant things were weak. On Tuesday it meant thing were weak. After three days—the tone is just horrible, there’s no other way to look at it. And I don’t know what would turn it around.”
Mark Luschini, chief investment strategist at Janney Montgomery Scott, said that “on a candle chart, those three declines represent ‘three black crows,’ a bearish omen.”