July 23, 2008
All three indices closed higher at mid-week, with the NASDAQ gaining .95 percent, the S&P500 .41 percent and the DJIA .26 percent.
Obviously, these are not advances to write home about, but their direction could imply that stock prices are on the way to further improvement.
Breaking down the current year into three segments, with the first ending as the decline hit bottom in March; the second mirroring the aborted recovery that ended in May; and the last segment stretching from that point to the current date, we consider the variations in median change of the three indices.
The first and last periods, obviously the segments dominated by falling prices, feature a negative median daily change for all three indices. The middle segment, however, that covers rising prices, has a positive daily median change.
Thus the price increases scored yesterday are, at least, at the proper level that distinguishes a rising market.
DJIA .26 percent
NASDAQ .95 percent
S&P500 .41 percent