August 18, 2010 — Price Action Returns to Small Daily Changes

The market failed to sustain yesterday’s pace, relapsing to gains of  .09 percent for the DJIA, .15 percent for the S&P500 and .28 percent for the NASDAQ. So far this year, of the 154 trading days, the DJIA has recorded only 16 other closes this small. Similarly, the S&P500 count of positive changes but less than today’s comes to 13 while the NASDAQ scored 21.   

Today’s pattern is two successive gains for the DJIA whereas the S&P500 and the NASDAQ posted their third daily advance in a row. There have been 23 days with this pattern in the past, with 6 occurring since January 2000. The results for the following day show twice as many declines as positive closes. DJIA    .09 percent                      NASDAQ       .28 percent                               S&P500                .15 percent

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