We are putting ChatGPT to the test here, and we shall know the results by market close tomorrow.

We prompted ChatGPT with the following:

What is the most pervasive pattern to predict a less than -1.0 % Daily Change.

ChatGPT came back with:

The most pervasive pattern before a daily change of less than -1% seems to involve negative changes in the days leading up to the significant drop. On average:

• The day before the drop, the daily change was approximately -0.11%.
• Two days before the drop, the daily change was approximately -0.05%.
• Three days before the drop, the daily change was approximately -0.05%.

We interpret this as three small down days before a 1 percent flop.  Given last week’s close in the S&P (the data we used was the S&P500 daily change) of:

Wednesday:  -0.19 percent
Thursday:     -0.29 percent
Friday:         -0.65 percent

the market is set up for a 1 percent down move according to the data and ChatGPT’s analytical capacity or pattern recognition.

No guarantees and beware of hallucinations.

Place your bets and stay tuned, folks.