December 21, 2010 NASDAQ and the S&P500 Extend Streak

Scoring their fourth positive day in a row, the NASDAQ added
.68 percent and the S&P500 advanced .60 percent. The DJIA also moved .48 percent higher for its first positive close since last Thursday. That makes today’s pattern +1 for the DIA and  +4 for the other two averages

Only 17 other such patterns exist, with the last five since January 2000. In the past, the following day tilted significantly to scoring gains. In this century the S&P500 has not had a decline, but moved higher all five times. Both the DJIA and the NASDAQ declined once, increasing the other four days.

You may have noticed that the NASDAQ and the S&P500 declined just twice this month, moving higher the other 13 sessions. The DJIA has 6 down days so far this month. But since the negative days of these three indices occurred separately, the total number of all three-positive-days comes to 7, so far.  Last year the three indices managed 12 such closes; in 2008 there were 11. Accordingly, this positive streak while pleasing is not uncommon and therefore should not result in new expectations of further
improvement ahead.


DJIA                    .48 percent

NASDAQ           .68 percent

S&P500               .60  percent

Leave a Reply

You must be logged in to post a comment.