January 18, 2012 Second Best Day of Year
Prices advanced more than one percent for the NASDAQ and the S&P500 while the DJIA gained .78 percent. These increases were the largest since the opening day of 2012.
Further, it was just the second time that the NASDAQ scored two advances in a row, while the DJIA and the S&P500 notched their third two day run. It was the 214th replication of two gains end to end in this century, and the 93rd two-in-a-row after a single decline.
Our diagram plots these 93 days; it shows that these +2/-1 sequences do not have a systematic relationship with trends of rising and falling prices. For example, these closes amounted to 3.9 percent of all days in both the 2003/2007 expansion as well as in the following decline.
Similarly, they fail to provide insights for tomorrow; the number of increases (green dots) just about equal for each of these price segments, except for the current period. However, increases occurred almost three times more often than (red dots) in the current, since 2009 period.
There was no projection for todays price changes since yesterdays pattern had an equal number of gains and losses on the following day. Unhappily todays pattern also fails to yield insights for the same reason.
DJIA .78 percent
NASDAQ 1.53 percent
S&P500 1.11 percent
