Rising more than two percent, the S&P500 led the way, up by 2.20 percent. The DJIA followed with a 1.99 percent gain while the NASDAQ moved plus 1.80 percent. Moreover, all three indices now stand above their July 22 close, seven days ago.
With these gains, the pattern is +1/-3 for the DADJ; both the NASDAQ and the S&P500 are at +2/-3. At present the count for this combination comes to 41 overall and 13 since the turn of 2000.
Importantly, todays DJIA and the S&P500 increases are the largest on record for this pattern.
Continuing our focus on the placement of todays result during previous price cycles, note that 8 of these 13 closes came during the 2003/2007 expansion; four of the other five were during the 2000/2003 contraction with the last one before today coming in the 2007/2009 contraction. Accordingly, these sequences continue the previous showing that current runs mirror rising, rather than falling, price trends. In addition, only seven closes this year exceed todays increases of these two averages; the NASDAQ, because of its smaller advance, had nine days with larger percentage changes.
The prospects for Tuesday, the following day, based on the history of these 13 pervious occurrences, while promising, fails to yield a substantial edge for further gains. Whereas the DJIA moved higher eight times, the other two increased only seven times, and fell on six.
DJIA 1.99 percent NASDAQ 1.80 percent S&P500 2.20 percent