The Significance of Tuesday's Big Dow Swing

It was a wild day on Wall Street on Tuesday, with the Dow Jones Industrial Average (DJIA) down 0.62% -- or more than 134 points -- at its intraday low, only to finish the session higher, adding almost 57 points. This marked the Dow's biggest intraday comeback in more than a year. And while the immediate aftermath of this signal looks positive for the DJIA, data beyond that doesn't look so encouraging for blue-chip stocks.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, this is the 19th time the Dow has been down by at least a half percent and rallied back to finish positive. Following these previous signals, the index has averaged a one-day return of 0.12% with a 61.1% win rate, versus an anytime return of 0.06% and 53.1% "percent positive." Past this, the performance is less encouraging, with the Dow underperforming at both the one- and two-week marks after such an impressive intraday comeback.

However, it's worth noting that the two previous times the DJIA was down at least 0.6% in intraday trading but swung to a win -- on June 16, 2016, and July 6, 2016 -- it was higher one and two weeks later. Widening the scope, the Dow has been higher one-week out in five of the last six occurrences.

Today, the Dow has explored a 74-point range -- last seen trading up 0.2%, following this morning's upwardly revised second-quarter gross domestic product (GDP) reading. While the DJIA is pacing for a second straight win, the S&P 500 Index (SPX) is on track to extend its daily winning streak to four.