Market Yields Small Gains

May 28, 2008

Even though today’s outcome was in doubt till the closing bell, all three indices managed to end positive today. The action since mid April, when the year’s low was reached, has been a slow climb interrupted by frequent retreats.

But even with this improvement, prices remain below this year’s initial days. The NASDAQ is 4.7 percent below its opening price of 2008; the S&P500 is worth 3.9 percent less and the DJIA is off 3.4 percent from the early January values.

Considering the daily path of the S&P500, for example, it is clear that so far in 2008, the market lacks momentum. The number of up days and losing days at this time is 48 in both directions. That is, there have been 48 days on which the S&P500 closed with a gain, and an identical number, 48 days on which this index lost ground. (See the diagram.)

sp-jan-to-may-27-runs.gif

 

Perhaps this even outcome will change, but until then, no firm market direction seems in sight.

DJIA .36 percent

NASDAQ .22 percent

S&P500 .40 percent

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