Even though daily gains seem to be moderating, prices continue to advance. The NASDAQ added 18 percent over the last 40 sessions substantially more than the S&P500′s 13 percent and the trailing 11.6 percent of the DJIA. While large, these rates seems moderate compared to the 40 day total change rate posted when the market nears a peak.
The diagram, detailing the 40 day rates of change for the NASDAQ over the past ten years, indeed reveals that the most recent rate, 18 percent, lags the near 40 percent of last year. Nevertheless, today’s 40 day advance ratios, cluster in the 99 percent bracket for every one of these three market averages.
DJIA .05 percent
NASDAQ .00 percent
S&P500 .26 percent
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