March 28, 2011 Prices Fall Repeating Last Tuesdays Pattern
Todays decline, a replay of March 22, has prices declining only a fraction, and follows three previous gains. That projection for March 23, the following day, called for a decline. That proofed wrong. Indeed prices moved higher not just the next day but also for three straight sessions. The result was that last Fridays pattern was +3/-1.
You may want to reference the March 22 blog for a description of the history and the circumstances of this +3/-1 series. Given the record, we must project that same future, of an increase for tomorrow, though we know the last repeat was off.
Yet the market today stands at a new, never before experienced pattern of changes over the past eight trading days. Tying these together into one continuous string results in a -1/+3/-1/+3 configuration. While that yields an alternate pattern of analysis, this alignment has never occurred before!
Thus, in a sense, today the market yields a new data point, a new record. That may seem of little practical significance however, every time a situation without a precedent occurs, it seems wisdom dictates caution.
DJIA -.17 percent
NASDAQ -.45 percent
S&P500 -.27 percent