February 6, 2012 An Alert
Only two other sessions had todays pattern; both occurred before prices hit their top on October 9, 2007. The closer one hit on August 13, 2007, just 40 trading days before the market turned down. Yet price moved up and down even at the earlier close on November 2006, some 233 trading days before prices started their fall. It was not until March 2009, that values hit their most recent bottom, and started to recoup their losses. As noted yesterday, only recently has the NASDAQ surpassed its 2007 top, and not by much.
At the end of the day, the S&P500 lost .04 percent; both the DJIA and the NASDAQ fell -.13 percent. This continues the recent series of small daily changes. We have described in earlier posts that historically, these minor daily ups and downs happen before, and anticipate, downturns.
The outlook for tomorrow, calls for falling prices for these three indices, based on the record of this pattern on the following day.
DJIA -.13 percent
NASDAQ -.13 percent
S&P500 -.04 percent