September 30, 2008
Led by the S&P500s gain of 5.29 percent, the indices advanced from the opening, with the NASDAQ increasing 4.97 percent and the DJIA 4.68 percent at the bell. It is rare for all three indices, simultaneously, to move ahead at this rate. This has occurred just five times; and today is the first repeat since July 2002.
Back in October 1987, when these indices experienced their record percentage drop more than twice the size of yesterdays figures- the DJIA and the S&P500 recovered at about the same rate as today. They gained almost twice as much on the following day, and then gave back near four percent on the third day. The NASDAQ followed a slightly different path, losing two days in a row, before recovering.
For the Record
Todays DJIA and the S&P500 increases are consistent with their past patterns. In similar circumstances, the DJIA has a 9:1 plus to minus ratio, whereas the S&P500 ratio is 9:2. However, the NASDAQ ratio of 12:15 was not helpful in anticipating todays gain
DJIA 4.68 percent
NASDAQ 4.97 percent
S&P500 5.29 percent