June 26, 2008
Today is only the ninth time since 2000 that the NASDAQ and DJIA lost more than three percent, joined by the S&P500, falling almost as much at -2.94 percent. Its this togetherness thats unique, for the NASDAQ, by itself, had an even 100 days of losses exceeding minus three percent in the last eight years.
The graph below indicates the levels of each of the indices on days that the NASDAQ.declines more than three percent, regardless of the performance of the other two. Its easy to see that all but nine of these accompanied the last decline, in 2000 to 2002.
Today, for the fourth time since last October, markets experienced this same configuration.
Looking at the past, since January 2000, of the nine days following such closes, all the indices recorded only two losses, managing to recover seven times. Moreover, drops on the following day have not occurred since 2001.
DJIA -3.03 percent
NASDAQ -3.33 percent
S&P500 -2.94 percent
