August 15, 2011 Third Advance
Prices moved higher for the third day in a row, yielding a pattern seen 67 times since 2000. The diagram below shows teir distribution over the four down-then-up history. We see these distributed almost equally over increasing and decreasing prices.
Yet, with the current cluster mirroring their frequency just before the markets last top in October 2007, this pattern could be signaling a similar downturn in the future.
In the past, there were an equal number of gains and declines on the following day.
DJIA 1.90 percent
NASDAQ 1.88 percent
S&P500 2.18 percent
