USMarketView

August 5, 2008

Today’s dramatic turn around boosted the DJIA some 2.94 percent, with the gains of the other two indices just about the same; the S&P500 rose 2.87 percent whereas the NASDAQ moved up some 2.81 percent.

Of course such price advances are welcome news. The DJIA has recorded only 25 such closes since 2000. The S&P500 has a few more: 33; while the NASDAQ has 104 days with gains in excess of today’s 2.81 percent.

Yet there is a downside to this record of strong performance: all of the S&P500 gains in this century, in excess of today’s 2.87 percent, came in two segments. The first as the market headed down, between 2000 and 2003, and the second, after the market peaked in September 2007, and lasting until today.

When prices were moving ahead, between 2003 and 2007, there was not a single day on which the S&P500 scored such a large gain.

It is true that the NASDAQ managed two closes greater than today’s 2.81 percent in that rising market; but these occurred when prices were making a minor, negative correction.

DJIA 2.94 percent

NASDAQ 2.81 percent

S&P500 2.87 percent

This entry was posted on Tuesday, August 5th, 2008 at 12 052008000000Tue, 05 Aug 2008 17:24:15 +0000 and is filed under Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.