Counting today’s NASDAQ advance of just .16 percent as its seventh straight daily positive close brings the count to five such streaks this year. That’s a rare positive sequence, since only 10 other seven day streaks occurred in the previous nine years since 2000. This low frequency should not be surprising, however, because these long runs come only in bull market times.
Looking ahead we note only five occasions when the positive run went on to an eighth positive gain in a row – with three of these 2010 happenings.
Of course such countings do not a bull market make and most investors would readily trade a sharp, substantial advance for these many recent small changes. Nevertheless, the historical association is clear: these runs typically occur when prices trend higher.
Accordingly, whether tomorrow moves prices higher or lower, the fact to remember is that lengthy positive runs are an important clue describing ongoing bull markets.
DJIA – .11 percent
NASDAQ .16 percent
S&P500 .11 percent
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