Prices shot up by 3.13 percent for the NASDAQ and the S&P500; the DJIA gained 2.82 percent closing with the largest increase in 27 trading days. Todays S&P500 performance ranks as the 93rd largest in its history; the DADJ performance is its 116th best, while the NASADAQ gain stands at position 145 from the top.
The three averages now have put together two straight gains; the record shows 194 other two-day runs since January 2000. The odds for a third positive close for tomorrow- however are not promising. Whereas the NASDAQ has an even number of gains and losses, both the DJIA and the S&P500 both have a substantially larger number of losses than increases in the past.
Continuing our look at the record, consider only the recent, since 1990, sessions on which these three indices achieved larger movements than todays. There have been just 9 such sessions before today. With 3 happening during the 2000/2003 decline, and 4 in the course of the 2007/2009 bear market; a further negative implication for future price trends comes apparent.
Yet lets not forget yesterdays long term outlook; it indicates rosier prospects, based on the past performance pattern on the second positive day after turnarounds. Indeed, since the current session possesses this feature, the above projection of failing prices deserves a caveat as equally needed by the outlook presented yesterday.
DJIA 2.82 percent
NASDAQ 3.13 percent
S&P500 3.13 percent