NASDAQ Rises on a Mostly Negative Tuesday

July 15, 2008

While the market opened down, the indices were rising all day; but only the                           NASDAQ closed up, but barely so, gaining just .13 percent. The S&P500, however, lost -1.05 percent whereas the DJIA dropped -.85 percent.

This makes it the seventh occasion in this year for such a divergent pattern. Last year there were twelve such days, with five coming after the market turned down in August.

Indeed, there is a correlation, albeit a weak one, between the level of the S&P500 and the annual number of these divergent closes. In 2001, when the index fell -13 percent, this decline was accompanied by 22 days of gains in the NASDAQ while the other two indices declined. But in 2003, there were just 11 such differing days while the overall level of stock prices gained 26 percent.

DJIA -.85 percent

NASDAQ…… .13 percent

S&P500 -1.05 percent

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