July 24, 2008
Contrary to yesterdays upticks, and positive inferences, today dealt sizable declines to the market. The DJIA and the S&P500 lost more than two percent, whereas the NASDAQ dropped -1.97 percent.
The record shows only three dates with such losses after two successive gains; those occurred between May 2002 and January 2003. They accompanied the markets substantial drop
and foreshadowed its recovery.
But the interpretation of what the future may bring can be bidirectional. If today is akin to the losses of May and July 2002, then, as at that stage, prices still have to fall some more.
However, if they reflect the January 2003 event, than the market is near its lower turning point and valuations will appreciate soon.
DJIA -2.44 percent
NASDAQ -1.97 percent
S&P500 -2.31 percent