May 26, 2010
Another Down Day
Sorry – hang ups with the computer data base allow only a brief report.
The day combined the third straight decline of the NASDAQ, down – .68 percent, and the DJIA, off -.57 percent, with the S&P500, after a positive close yesterday, down -.57 percent. This is a repeat of the unusual combination of the three indices not sharing identical, daily profiles. In this case, the record reveals only 8 other such closes, with two occurring since January 2000.
The next day results of this pattern show 5 gains and 3 losses.
Problems with the data base prevented further analysis, specifically aimed at the question, are frequent small changes more common at turning points of price trends than when prices move confidently in either a positive or negative trend.
We direct further attention to the daily price movements of the current cycle compared to the 2003/2007 cycle. Both profiles reveal that recovery is neither smooth nor continuous, but is subject to sytematic and significant reversals.
More on this tomorrow – if the computer problems don’t evade correction.
DJIA -.69 percent
NASDAQ -.68 percent
S&P500 -.57 percent