Gains Recover Some of Yesterdays Losses
Prices managed to eke higher after being in the red for most of the morning. While the mild. 23 percent improvement returned the NASDAQ to its Tuesday level, the DJIA up just .27 percent failed to manage that recuperation. Nor did the S&P500s increase of .34 percent allow that index to revisit Tuesdays last price.Todays pattern the three indices posting their first gain after Wednesdays decline, but the DJIA also on Tuesday is its 33rd repeat, 17 of which occurred since January 2000.
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The diagram shows these dates with a large triangle, imposed on the daily closing prices of the S&P500.Contrary to many of these figures displayed recently, it shows todays combination associated more with growth than declines. Interpreting the 13 days associated with rising prices as a signal of better times ahead seems reasonable, especially since the other 4 originated in declining markets.
Yet using these same results to project Fridays action yields a negative expectation. The NASDAQ fell 12 times on the following day; it turned higher just 5 times. The short term prognostication holds for the DJIA and the S&P500; their ratio is 11 losses and 6 increases.
DJIA .37 percent
NASDAQ .23 percent
S&P500 .34 percent