The key is not just the percent of the time you are right, but also how much you win when you are right and how much you lose when you are wrong. Enough theory, on to the data. The compounded average is the preferable choice, though I included the simple average as a check for myself. My overall conclusion actually stays the same as before .
Positive streaks are good bets while short negative streaks are losers.
Negative streaks of longer than 3 days are a more ambiguous conclusion. If you are in a positive streak, the expectancy of staying with the streak is positive through 10 days, two weeks of market action. In fact interestingly enough, the expectancy for the next day is fairly constant following 1-7 days of consecutive upward moves. The expectancy for the next day reverses to positive for streaks of 4-6 days, though the sixth day is very small and below the average for the entire period. The interpretation would be that following three down days in a row, you can expect on average to reverse.