December 7, 2010 Another ‘Not Much Change Today’


 

Prices changes were even smaller than the day before. Though the market started higher in anticipation of the tax compromise, by day’s end, the DJIA lost  -.02 percent; the NASDAQ though stayed in the positives at plus .14 percent, while the S&P500 gained .05 percent.

This pattern occurred merely three times before, in the distant past of 1976, 1991 and 1995. Therefore, this history fails to provide meaningful information for what might happen at the end of 2010.

One factor stands out – recently S&P500 prices have oscillated in the range of 1193 – 1223, since the beginning of November. Whereas those 30 points do amount to 2.5 percent, that interval consists of many different up and down phases. These changes make the diagram of closing prices near horizontal, and considerably less volatile than during the previous 12 months.

Given the market’s record of sizable up and down moves, the current stability suggest a breakout in the near term – and that could be in either direction.

 

 

DJIA                        -.02 percent

NASDAQ                 .14 percent

S&P500                     .05 percent

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