The NASDAQs loss of - 1.19 percent following a stretch of seven positive sessions, is its deepest since June 7. Yet it was smaller than the S&P500s -1.61 decline as well as the -1.42 percent of the DJIA; and for these indices, the worst day since June 4.
Todays pattern of two declines in a row becomes the 141st repeat since January 2000. Those previous falling sessions suffered setbacks ranging from -.01 percent to more than 9 percent, although their average declines clustered around minus -1.5 percent. The following day, in the past, experienced more advances than declines, with the positive frequency about 125 percent of the number of declines.
The losses of the past several weeks, rather than being distributed similarly impacted each of these three indices differently. The diagram, showing the daily closes as a proportion of the October 2007 high, details these differences. The NASDAQ, currently at 80 percent of its high, regained more ground than the DJIA and the S&P500, since the bottom in March 2009. The two averages have changed places several times over the cycle, and currently stand at 70 percent for the S&P500 and 73 percent.
Hence focusing on such differences provides opportunity for gains, even as the total value of all assets is declining.
DJIA - 1.43 percent
NASDAQ -1.19 percent
S&P500 -1.61 percent