August 24, 2011 Gains Continue
Prices moved higher for the third day in a row, a result seen on 227 other days, with 68 since 2000. Most of the closes on the following day, however, were negative. The NASDAQ had 38 losses and 30 increases, the S&P500 declined 36 times, moving higher on 32 days. The DJIA, on the other hand, moved higher on 38 next days and fell just 30 times.
Moving back to yesterday, when the earthquake combined with computer troubles stopped this blog, the averages scored substantial increases. Nevertheless, in the recent past, those gains occurred mostly when the market was declining. The diagram reveals that none was seen during the long price run up between 2003 and 2007. Most of these days cluster in the two major declines of 2000 and 2007. Yesterdays incident, accordingly, requires caution rather than celebration.
DJIA 1.29 percent
NASDAQ .88 percent
S&P500 1.31 percent
