USMarketView

August 27, 2008

With the NASDAQ posting its first up tick of the week, and the DJIA and the S&P500 moving higher for the second day in a row, it was a good day for those expecting higher prices. Nevertheless, as of today, Wednesday, none of the indices has reached the closes posted on last Friday.

Analyzing the pattern of closes so far this week, the NASDAQ has a +1/-2 record, while the DJIA and the S&P500 stand at +2/-1

Restating these positions, today’s positive NASDAQ close has been added to the downticks of Tuesday and Monday. The DJIA and the S&P500 today posted their second successive up day, while their account must also count Monday’s negative change.

Fifteen such patterns exist since 2000, and today’s result makes it sixteen in total. Plotting the S&P500 over the past eight years, and locating the previous 15 events on the diagram below, indicates that usually this pattern occurs when the market is moving higher.

As for the following day, the DJIA had 11 losses and only 4 gains. However, both the NASDAQ and the S&P500 scored eight gains and had only seven losses.

For the Record:

Comparing today’s gains for all three averages with their history, as posted yesterday, indicates that their performance exceeds the average number of gains achieved in the past.

DJIA .79 percent

NASDAQ… .81 percent

S&P500 .80 percent

This entry was posted on Wednesday, August 27th, 2008 at 12 032008000000Wed, 27 Aug 2008 15:56:50 +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.