With the NASDAQ jumping 7.07 percent to post its 14th largest gain ever, the DJIA and the S&P500 followed suit. At 6.37 percent, the S&P500s increase ranks as its eighth highest; while the DJIA achieved the same status by rising 5.80 percent.
Todays achievement, however, is even more rare; for gains of such magnitude together, occurred just three other times since 1950. Two occurred last October, while the other dates back to 1987. Yet this landmark does not merit outright celebration, once we consider other factors accompanying these dates. First, the October 2008 incidents came just before the averages started their current steep dive. The 1987 also came when the trend was down, although at that time prices were reaching their bottom.
The other feature deserving caution is what happened to prices on the following day: The NASDAQ moved higher just once, and fell -3.54 percent and -4.49 percent the other times, while the DJIA and the S&P500 declined on all three days, and both dropped almost four percent once.
Additionally, the daily up and down seesaw continues, with todays gains accounting for the fifth reversal in prices in the last five days. The infrequency of such runs is stunning, with only 132 such chains in the near 15,000 trading days since 1950.
DJIA 5.80 percent
NASDAQ 7.07 percent
S&P500 6.37 percent