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April 11, 2012    Plus Close Implies Market Strength 

Finally after dropping five days in a row, the DJIA and the S&P500 moved higher. With the NASDAQ also increasing after two declines, the resulting pattern is +1/+1/+1. Today’s is its 511^th replay since the beginning of 2000, nearly 3,100 trading days ago. The diagram locates these and shows the results for the following day. While declines [in red] outnumber increases [in green], the margin is small: 54 percent to 46 percent.Yet bull markets show a larger proportion of plus days -55 percent- than the two bear markets -48 percent.These historical differences allow tomorrow’s price changes to provide a clue to the future:  the trend of prices continued higher more often after gains on the following day.  

 DJIA             .70 percentNASDAQ      .84 percentS&P500          .74 percent

This entry was posted on Thursday, April 12th, 2012 at 12 072012000000Thu, 12 Apr 2012 07:24:37 +0000 and is filed under Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.