A rare batch of selling suggests the stock market may have just hit ‘rock bottom’

By Shawn Langlois
Published: Dec 12, 2018 1:34 p.m. ET



Have we hit rock bottom?
If recent market action feels extraordinary, that’s because it has been.

In fact, we’re seeing something that hasn’t happened since 2008, and, according to Dana Lyons of J. Lyons Fund Management, has only occurred a scant 11 times since 1960 — four straight sessions delivering intraday declines of at least 1.89% on the S&P 500 SPX, +0.54%

A rare streak of selling pressure, no doubt.

But as wrenching as this year has been for many investors — like this guy who has lost 99% in his portfolio — there’s reason to believe, at least in the form of this chart, that such downward pressure suggests bullish times ahead:

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