June 9, 2010 — Small Losses at End of Day

Prices could not maintain the early morning momentum, so at the close the NASDAQ was off  -.54 percent, the DJIA fell -.41 percent while the S&P500 lost -.22 percent.  It was the NASDAQ’s fourth negative session in a row; but the first losing day after yesterday’s greater than 1 percent gains.

This is only the 12th   repeat of this pattern since 2000 and the 41st overall. It’s worthwhile to note that the daily losses on those previous sequences came in much deeper than today’s results. Further, adding results to the comparison, yields gains for the DJIA and the S&P500 whereas the NASDAQ suffered its third straight decline.Strangely enough, the record shows as many post-2000 incidents, 11, for this pattern as when the NASDAQ closes down three days in a row.Looking at the past to project tomorrow’s changes does not provide significant guidance for projecting the next day. Though the S&P500 result favors a gain, because its record is 7 advances against 4 declines, the DJIA and the NASDAQ record fails to yield a robust outcome. Those indices show 6 gains against 5 losses.

DJIA                -.41     percent

NASDAQ        -.54     percent 

S&P500            -.22     percent

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