March 6, 2012 Losses Deepen as Prices Post Third Consecutive Loss
The S&P500 closed -1.54 percent down from the Mondays close, and Mondays decline of -.39 percent exceeded Fridays -.32 percent decline. The NASDAQ and the DJIA experienced similar, or parallel, configurations of losses becoming steeper each day.
Graver yet is that the proportion of positive changes on the following day also decline. While the past ratio of gains to losses of todays combination is only .57 percent, yesterdays pattern had as many gains as losses on the next day. Further, Fridays next day expectation showed increases at 1.5 times the frequency of losses.
Of course while it is fairly difficult to comprehend these abstract ratio comparisons, the keynote focus is the conclusion that todays decline fits into a series of declines. It is not just single day oddness, but rather fits into a configuration experienced in the past.
DJIA - 1.57 percent
NASDAQ - 1.36 percent
S&P500 - 1.54 percent