January 21, 2011 An Unusual Day


 

Today’s pattern –the NASDAQ down for the third successive day while the JIA and the S&P500 moved higher after two losses- has occurred only 16 other times since the start of 2000. With half posted of these during the 2000/2003 downturn and six others in the following recovery, this combination fails to provide insights for the direction of the current market.

Moreover, analyzing just the total frequencies of DJIA and S&P500 rising while the NASDAQ declines –and there are 90 such closes since 2000- also yields no clues of future price developments. The data allow only the conclusion that these rare events have been, in the past, distributed almost equally between bull and bear markets.

 


DJIA                    .41  percent

NASDAQ          - .55  percent

S&P500                .24  percent

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