September 15, 2011 Fourth Positive Day Signals Good Times
Todays analysis parallels yesterdays: four advances in a row occurred only 25 times since 2000, yet there have been three others earlier this year. These were on May 30, April 29 and February 3 a period of near uninterrupted rising prices that lasted until the beginning of July.
Whereas there were 20 runs of four-daily-gains-in-a-row when prices were rising, only five happened while prices were tending down. (See the diagram below.) Note also the distinct difference of price changes on the following day. There was only one close with a next day advance while prices were falling but there were ten during the two expansion periods.
Finally, the fact that prices continued to move higher during and after the three earlier runs this year, indicates their relevance for projecting future price movements
DJIA 1.66 percent
NASDAQ 1.34 percent
S&P500 1.72 percent
