A negative day from the start, left the NASDAQ with a -.90 percent loss, the DJIA fell .65 percent and cut the S&P500′s value by -.42 percent. Yet the very uncommonness of these declines helps to see the significance of the recent advance. It is only the second decline in the last 17 sessions for the NASDAQ and the DJIA; it is the fourth minus in ten days for the laggard S&P500.
At this point, questions about the market’s direction, seem premature, even though the week scored only one increase on Wednesday. Considering the length, and the magnitude, of gains since September, a pause does not seem unreasonable. Nevertheless, despite the recent run-up, a decline can not be ruled out.
The historical record of yesterday’s pattern, an almost equal proportion of declines and increases, failed to provide strong support for projecting lower or higher prices for this session.
Today’s pattern, however, tilts strongly in the negative direction, although the five incidents in this century were evenly divided between advances and declines.
DJIA -.65 percent
NASDAQ -.90 percent
S&P500 -.42 percent