The NASDAQ extended its positive streak to six days, but the DJIA and the S&P500 fell. Yet with all three the price changes not far from zero, the focus is
on todays pattern: +6 for the NASDAQ and -1 for the others. Of the 36 previous repeats, 7 happened since 1999.
Only one of these seven shared a bear market; that was in 2001. Further, on the following day, all three indices were down, with losses ranging from -1.3 to more than -3 percent.
The good news is that the other six occasions happened when prices were moving higher. Four during the 2003/2007 expansion and the last two since 2009, the start of the current recovery.
Moreover, on the next trading day, prices moved up; with all three indices gainers on each of these six sessions.
We consider these repetitions in good times support for believing that the market will move higher.
DJIA -.10 percent
NASDAQ .35 percent
S&P500 -.13 percent