April 4, 2012 Prices Fall Again Down for two days in a row does not mean disaster ahead at least the record does not show such a one/two step. The market has seen 162 other closes with this pattern.
Increases just about equaled the number of decreases on the following day. Further, they were as frequent in rising markets as in declining ones, accounting for about five percent of all days.
The only exception occurred during the 2007/2009 decline, when they fell to 3.4 percent.
These comparisons represent a positive outlook, one that contradicts the pessimism suddenly sweeping most commentaries. We have not been hesitant to hoist warning flags when a daily close resembles patterns of past declines. Todays, however, does not fit that niche. DJIA -.95 percent
NASDAQ -1.46 percent
S&P500 -1.02 percent