The market escaped deep losses which had prevailed almost to the closing bell, and while the DJIA and the NASDAQ fell by fractions, the S&P500 gained .04 percent. Yet, while positive, the S&P500 advance was a lesser absolute number than the DJIAs -.23 percent and the NASDAQ loss of -.12 percent.Todays pattern of +1/-1/+1 for the S&P500, therefore, diverges from the -2/+1 count of the two other indices. There are just 5 incidents like this in the record that reaches back to 1950; and merely two occurred since 2000.
With a similar departure from the usual agreement of direction crossing the tape about a month ago, what, if anything, do such disagreements imply for the markets future? Obviously the strong advance from the March 2009 low point ended some time ago.
Yet it is far from clear if the uncertainty created by our Congress proposed changes in the regulation of the financial sector in addition to the European crises, have a significant role in weakening, and losses, of prices. DJIA -.23 percent
NASDAQ -.12 percent
S&P500 .04 percent