USMarketView

February 20, 2009

With Monday’s market closed for Presidents’ Day, the string of daily losses extends back to last Friday, the 13^th, as the NASDAQ came in just  .11 percent on the negative side, while the S&P500 gave back  -1.14 percent and the DJIA declined  -1.34 percent.  In treating this close as five successive losses for all three indices, it considers Wednesday’s  .04 percent gain for the DJIA- so close to zero- as a negative change.

In the past, there were only 16 such days, with five occurring since January 2000.  Moreover, these are spread almost equally between years in which prices fell -seven times- and prices appreciated- nine times.

It is not surprising that the history of the following day has a preponderance of gains.  After all, continuous daily changes in direction dominate the market’s character, whether the trend has prices rising or falling. 

Thus, the DJIA has 11 positive days and only five negatives on the day after prices fell five days in a row.  Both the NASDAQ and the S&P500 are close behind, scoring 10 gains and only 6 losses on the next trading day.

 

DJIA              -1.34  percent

NASDAQ          -.11  percent

S&P500         -1.14  percent

This entry was posted on Saturday, February 21st, 2009 at 12 102009000000Sat, 21 Feb 2009 10:35:17 +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.