The NASDAQ shot up 1.14 percent, posting the largest gain since October 15, nearly three weeks ago. The other two averages moved ahead similarly, rising .58 percent for the DJIA and .78 percent for the S&P500. These are their best daily rates since October 20, nine trading days in the past.
I welcome today’s relatively Iarge changes; they seem to be a return to more usual daily price fluctuations, unlike the recent mini sized ups and downs.
However, today’s pattern does not belong to the typical. With the DJIA rising for the third straight day, and the S&P500 increasing for the second day, while the NASDAQ posting a gain after yesterday’s loss, yields a +3, +2, and +1 combination. Remarkably only six other days share this pattern, yet we see it for the second time in 2010.
A significant reversal at the end of March, ushered in the major decline of April, and lasted till the current rally began.
Four other occasions, in the 1980′s and 1990′s, also happened just days before deep declines. Yet the market recovered promptly from these reversals, and then returned to the earlier trend of rising prices.
DJIA .58 percent
NASDAQ 1.14 percent
S&P500 .78 percent