April 12, 2012 Prices Continue Higher
The DJIA and the S&P500 added far more than their average change for two the second day of advances. Yesterday the DJIA gained 1.41 percent, compared to its 1.00 percent mean change since 2000 when it posts two straight gains. Similarly, the S&P500s 1.38 percent increase exceeds its 1.1 percent average. However, the NASDAQ fell behind its historic 1.6 percent advance, increasing just 1.30 percent.
Other features of yesterdays changes continue to support the view that prices, far from tumbling, will remain on their upward track. In the past, two gains in a row occurred near 15 percent of the time when prices were trending higher, but came to only 2.4 percent of the bear market closes.
The diagram shows this advantage by plotting the three advances in a row in this century.
DJIA 1.41 percent
NASDAQ 1.30 percent
S&P500 1.38 percent