October 5, 2011 Gains Continue
Though not as much as yesterday, prices of the three indices moved higher. The resulting pattern, of +2, has occurred 214 times in this century. Since these have been distributed almost equally, percentage wise over the two expansions and two contractions, todays close fails to provide a basis for any insights into future prices.
Looking at the following day for this pattern, the S&P500 had almost an equal number of declines and increases in the past. The NASDAQ record shows 114 advances and 100 declines; the DJIA has the opposite distribution, with only 90 increases and 124 losses.
Unfortunately, these results fail to provide a basis for projecting price changes for tomorrow.
DJIA 1.21 percent
NASDAQ 2.32 percent
S&P500 1.79 percent