June 18, 2008
It was the third straight loss for the DJIA, and the second in a row for the NASDAQ and the S&P500. So far, there have been seven down closes in June; this makes it the eight in the 13 trading days of the month. In May, with 21 days of market activity, the S&P500 fell seven times, while the other two indices declined on ten days.
This combination -two successive declines in both the NASDAQ and the S&P500, while the DJIA scored its third straight loss- has occurred just ten times since January 2000. In this case, the past gives little direction on the future, for five of the following days closed higher, and five closed lower.
Moreover, looking at the actual price trend of these indices, since 2000, it is seen that in five cases this closing pattern occurred when the market was at, or near, a top; and two when prices were at, or near, the bottom of a trend. There are two dates when the trend was down and one when prices were rising.
DJIA -1.08 percent
NASDAQ -1.14 percent
S&P500 -.97 percent