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Methodology

S&P 500 Pattern Analysis: Which Historical Episodes Look Most Like February 2026?

A data-backed S&P 500 pattern analysis that compares the latest 60-day path to historical twins and converts those analogs into probabilistic forward return scenarios.

If you want a practical S&P 500 forecast without pretending anyone can call the exact bottom, historical similarity is useful. I tested the last 60 trading days of S&P 500 action through February 13, 2026 against every same-length historical window since 1950, using a normalized-path similarity score.

Baseline comparison: forward outcomes from matched windows were compared with unconditional forward outcomes across all eligible historical windows. Headline result: the top 20 most similar episodes showed a +4.53% median 60-day return (vs +2.52% baseline) and a 75% 60-day win rate (vs 66.2% baseline).

Why this matters for "market crash prediction 2026" searches: this method is not a crystal ball; it is a probability map that helps retail traders size risk instead of guessing headlines.

What exactly was tested

  • Current pattern window: 60 daily observations ending 2026-02-13.
  • Historical search set: all non-overlapping candidate windows from 1950 onward with 120-day forward data available.
  • Similarity metric: hybrid score using correlation + distance on z-scored normalized price paths.
  • Selection rule: top 20 matches, minimum 60-trading-day separation between selected episodes.

Table 1 — Top 10 Most Similar Historical Episodes (Template A Scorecard)

Match window end Similarity score Market backdrop then (data-derived) Forward 30d Forward 60d Forward 90d
1962-09-17 0.777 Deep drawdown rebound attempt -5.69% +6.01% +11.58%
1970-11-06 0.774 Late-uptrend pullback +6.79% +14.74% +20.15%
2017-01-30 0.770 Range-bound high-volatility regime +3.71% +4.67% +6.70%
1963-06-19 0.770 Late-uptrend pullback -1.46% +4.39% +5.59%
2016-05-04 0.764 Range-bound high-volatility regime +1.31% +5.97% +5.26%
2005-01-14 0.764 Late-uptrend pullback +2.19% -0.91% +0.46%
2024-10-31 0.763 Late-uptrend pullback +6.06% +6.41% -1.17%
1997-08-25 0.762 Late-uptrend pullback +6.84% +1.96% +5.96%
2023-08-18 0.758 Late-uptrend pullback -1.86% +0.96% +9.43%
1951-03-13 0.758 Late-uptrend pullback +3.36% -1.17% +1.07%

Visual 1 — Current 60-day path vs top 5 historical twins (normalized index)

xychart-beta
    title "Normalized 60-day S&P 500 path: Feb 2026 vs top analogs"
    x-axis [D0, D5, D10, D15, D20, D25, D30, D35, D40, D45, D50, D55, D60]
    y-axis "Index (Start=100)" 74 --> 114
    line "Current (to 2026-02-13)" [100.00, 100.49, 102.35, 102.52, 101.92, 103.56, 102.59, 103.73, 104.08, 103.64, 104.00, 103.89, 102.45]
    line "1962-09-17" [100.00, 101.53, 104.81, 107.91, 106.01, 106.74, 108.45, 107.39, 110.11, 111.18, 110.32, 109.07, 110.24]
    line "1970-11-06" [100.00, 104.12, 108.45, 109.80, 110.38, 110.51, 110.79, 113.91, 113.80, 112.73, 112.05, 111.36, 112.65]
    line "2017-01-30" [100.00, 101.32, 103.25, 104.32, 104.12, 106.14, 106.70, 107.27, 106.51, 107.83, 107.72, 107.27, 108.01]
    line "2016-05-04" [100.00, 102.27, 103.66, 106.74, 106.79, 108.77, 110.59, 111.36, 111.50, 112.35, 113.43, 113.04, 110.67]

Caption: The recent path resembles prior noisy uptrend-pullback structures more than classic waterfall-crash structures.

What to notice: Most best matches show a choppy climb with frequent pullbacks, not a straight trend.

So what: If this analog set holds, the more likely risk is whipsaw, not one-way collapse.

Finding 1 — Similarity helps, but tails still matter

The 60-day and 90-day medians from matched episodes are constructive. But dispersion is wide, and bad outcomes still exist inside the top-matched set.

Practical read: this is a positive-tilt distribution, not a guarantee.

Table 2 — Forward Return Distribution Across Top 20 Matches (with baseline)

Horizon Matched N Median return P25 P75 Win rate Median max drawdown Worst max drawdown Baseline median / win rate (N=19,058)
30d 20 +2.19% -1.34% +4.96% 65.0% -2.95% -13.47% +1.49% / 62.8%
60d 20 +4.53% +0.62% +6.86% 75.0% -4.80% -13.47% +2.52% / 66.2%
90d 20 +5.78% +0.43% +11.75% 85.0% -6.61% -35.96% +3.69% / 68.0%
120d 20 +7.17% +0.73% +13.43% 75.0% -7.35% -46.41% +4.84% / 70.2%

Visual 2 — Forward distribution by horizon (matched episodes)

xychart-beta
    title "Forward return distribution from top-20 similarity matches"
    x-axis [30d, 60d, 90d, 120d]
    y-axis "Return (%)" -2 --> 14
    line "P25" [-1.34, 0.62, 0.43, 0.73]
    line "Median" [2.19, 4.53, 5.78, 7.17]
    line "P75" [4.96, 6.86, 11.75, 13.43]
    line "Baseline median" [1.49, 2.52, 3.69, 4.84]

Caption: The matched-episode distribution is shifted higher than baseline, but still includes meaningful downside tails.

What to notice: Median outcomes improve with horizon, yet lower-quartile outcomes remain near flat/negative.

So what: Participate with risk controls, not with all-in sizing.

Action Checklist: Use historical similarity without overfitting

  • Treat this as a probability tool, not a point forecast.
  • Size each position so a stop-out costs no more than 0.5%-1.0% of portfolio equity.
  • Build exposure in tranches (for example 40/30/30), not one entry.
  • Pair upside thesis with a drawdown budget (for example portfolio max DD of 10-12%).
  • Re-run similarity weekly; if top-match dispersion widens, reduce gross exposure.
  • Do not cherry-pick one analog year; use the full top-N distribution.
  • Track realized outcomes vs model percentiles to detect regime break early.

Evidence Block

  • Data source: Stooq daily S&P 500 closes (^spx), 1950-01-01 to 2026-02-13.
  • Current window parameters: 60 trading days ending 2026-02-13.
  • Similarity metric: hybrid score = correlation + distance on z-scored normalized path.
  • Candidate sample size: N=19,058 eligible historical windows.
  • Matched sample size: N=20 top-ranked windows (minimum 60-day spacing).
  • Forward horizons: 30/60/90/120 trading days.
  • Baseline definition: unconditional forward distribution across all eligible windows (N=19,058).
  • Headline number definition: +4.53% median 60d return and 75% 60d win rate in matched set vs +2.52% and 66.2% baseline.
  • Caveat: This is pattern-based probabilistic analysis, not individualized investment advice.

References

  1. Stooq historical S&P 500 data (^spx): https://stooq.com/
  2. InfluencerQ methodology notes (REVIEW_CRITERIA.md and internal scoring process)

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