If, on Friday, the consensus considered the announcement of Goldman Sachs investigation foretelling an end to the upswing that started in March 2009, todays results spell an objective No to that conjecture. The NASDAQ gained 1.53 percent, the S&P500 1.31 percent, and the DJIA 1.30 percent.
Moreover, the pattern at the end of trading today stands at +1/-1/+2 for the three indices, a combination occurring 57 times in the past, and on 37 days since January 2000. The conclusion, upon analyzing these later closes, supports a projection of rising markets ahead.Twenty-five of these happened during the market appreciations of 2003/2007, while the other 12 came during the declines of 2000/2003 and 2007/2009.
This ratio of 2:1 supplies strong support for the projection of a rising price mode for the current market.Looking at tomorrow, in the past another round of increases dominated the following day. While the overall count is 21 gains and 16 declines, note that these are not distributed equally among the rising and declining price sagas.
The NASDAQ, for example, had an even number of up and downs in the declining years, but in the good years, the next days 12 increases outnumbered the 7 decreases. Similarly, the DJIA saw 10 declines and 8 gains in the falling price years but 5 declines and 14 increases in the recovery years.
DJIA 1.30 percent NASDAQ 1.53 percent S&P500 1.31 percent