July 30, 2008
Sizeable gains today did not match yesterdays performance, but, except for the NASDAQ index, they reached more than 1.6 percent.
The DJIA scored only 21 other two days in a row closes this large since 1952. As for the current year, only on July16 and 17, some nine days ago, did the DJIA gain more than 2.3 percent on one day and more than 1.6 percent the following day.
Moreover, all of these twin gains followed immediately after the index fell a day earlier.
The following diagram charts the DJIA from January 2000 to last July 25. The vertical lines are plotted on the six days with these twin gains. It is clear that the first three took place just before the DJIA index started a significant decline. The fourth and fifth occasions, in August and October 2000, however, seem to precede, if anything, a substantial rise in prices.
Only time will tell if the July 17 and todays closes connote a lower turning point or continued decline.
DJIA 1.63 percent
NASDAQ . .44. percent
S&P500 1.67 percent