March 25, 2011 Third Successive Advance
Once again prices moved higher for the third day in a row repeating this sequence just four market days after its last appearance. Furthermore, this is the 62nd repeat since the beginning of 2000.
Only a brief look at the record reveals their frequency is associated with rising markets. Todays three-in-a-row becomes the 14th since the current recovery began in March 2009. So far, 2.8 percent of all closes since then have been three-in-a-row. In addition, the 34 that occurred between 2003 and 2007, during the previous bull market, amount to 2.95 percent of all sessions in that period.
In contrast, only 1.41 percent and 1.01 percent of the closes during the previous two bear markets achieved this mark.
In consequence, the inference that the present recovery still has not reached its end, gains support from todays repetition of the three indices three-in-row.
As for the following day -Monday- prices in the past moved higher 32 times and fell on 29 days. However, the small margin between past gains and losses allows not much confidence in projecting a fourth positive close.
DJIA .41 percent
NASDAQ .24 percent
S&P500 .32 percent