Today’s market closed with a pattern never seen before! Whereas the DJIA edged up .12 percent, continuing its advance for the 6th day in a row, the S&P500 fell, posting its first loss in six days.
However, their prices change were minute, ranging from the S&P500 decline 0f -.12 percent to the DJIA +.12 percent gain. Surely a day of rest while investors evaluate their options.
Yesterday’s analysis of price changes since the 2007 top, we note that both the DJIA and the S&P500 remain substantially below those highs. The S&P500 to date recovered only 89 percent of its previous, historical high. While the DJIA’s recovery is more robust, nevertheless this index is no higher than 93 percent.
Given this substantial divergence, three possible alternatives come to mind. The NASDAQ is due for a major reaction, the DJIA and the S&P500 will enjoy a huge advance, or that the NASDAQ will regain its formidable premium of the early 2000′s.
