Starting with a surge of nearly two percent, the day ended with all three averages gaining more than 1.5 percent. The NASDAQ had 18 gains this size, or larger, in the 200 plus market days so far in 2010. The other two averages, not far behind this pace, scored almost as many. The S&P500 had 17 while the DJIA managed 15.
This is good news, obviously; nevertheless it need not indicate a piece of cake ahead, since an association between the size of daily gains and the level of closing prices is neither systematic nor statistically significant.
Todays pattern, of +2 for the NASDAQ and the S&P500, and +1 for the DJIA, happened three previous times this year. But these averages moved higher only once, declining twice.
Thirteen other sessions with this pattern occurred between 2000 and 2009; while the next days gains outnumber declines, the margin, at plus 7 days and minus 6, is not impressive.
DJIA 1.57 percent
NASDAQ 1.55 percent
S&P500 1.54 percent