September 21, 2011 Fifth Plunge Since August 10
The three indices dropped near three percent as the NASDAQ and the S&P500 fell for the third day in a row. In the last 29 trading days, since the beginning of August, alternating and large price changes have overwhelmed trading. Todays deep loss came just eight days after these indices lost more than two percent; and that followed, by four days, a more than two percent loss.
Still earlier, these prices nose-dived more than four percent first on August 10 and then, six days later again more than four percent on August 18. Yet the market also scored similar large increases: five days had gains ranging from two to more than five percent.
Another issue will feature analysis and comparisons of these fluctuations.
The pattern of Wednesdays market three successive losses for the NASDAQ and the S&P500 combined with the single decline of the DJIA- has occurred only 11 previous times since 1999. Unlike previous closes, these patterns do not divide systematically between bull and bear markets. On the following day, losses outnumbered gains about two to one.
DJIA -2.49 percent
NASDAQ -2.97 percent
S&P500 -2.94 percent