September 16, 2008
The day after the Lehman news, and even while the AIG situation remains unresolved, all three indices moved up more than a point. Thats quite different from the early morning start, when prices fell. It was not until 2 PM, after the Fed announced its refusal to lower rates, that prices started to move higher. Finally, at the close, the S&P500 gained 1.75 percent, the NASDAQ 1.36 percent and the DJIA 1.30 percent.
This is the 14th time this year for the pattern of +1/-1 -prices closing higher after falling the day before. On the previous 2008 occasions, these indices had seven gains in excess of two percent the following day. The NASDAQ had seven moves between one and two percent, while the other two measures had four increases in this range.
For the Record:
Comparing todays gains for these three averages with their record, as posted yesterday, reveals results in line with the past. The DJIA had 13 gains compared to 7 declines, while the S&P500 had 9 advances and only 4 declines. Accordingly, the near 2:1 past ratio of gains to losses would lead to an expectation of a further gain on the next day.
DJIA 1.30 percent
NASDAQ 1.36 percent
S&P500 1.75 percent
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