November 1, 2011 Losses Near Minus Three Percent
Sharp losses continued but were deeper than the day before. The NASDAQ decline was its third in as many days, while the DJIA and the S&P500 continued their declines to two successive days. This is the 20th repeat, since the beginning of 2000, of the combination.
Our diagram, identifying these closes, reveals that 14 of these iterations happened in the two recent bear markets while only five occurred when the trend of prices was up. Inferring from this distribution between good and bad times, results in concluding that the current negative direction of prices will continue down.
It is not possible to project the price outlook for tomorrow, because this patterns history reveals an almost equal number of gains and losses. Nor can we assess tomorrows direction by inspecting this history, since the plusses and minuses occur equally between good and bad market phases.
DJIA -2.48 percent
NASDAQ -2.89 percent
S&P500 -2.79 percent