May 10, 2012 Finally, The DJIA Moves Up But Outlook Remains Dim
Finally, after six successive declines, the DJIA closed higher. Yet today’s pattern does not promise a clear path out of the woods. With the NASDAQ down for the third day, while the S&P and the DJIA turned higher, we have a repeat of pattern played for the 19th time in this century. The diagram showing these days, uses red to indicate lower prices for tomorrow and green for advances.
It’s not just that the 13 declines outweigh, by more than a factor two, the 6 increases on the following day. Our calculations, not shown on the graph, indicate that the median gains for the following day come to less than one-half of the median losses. The NASDAQ, for example, shows a median loss of -2.12 percent but a median gain of only .85 percent.
DJIA .16 percent
NASDAQ -.04 percent
S&P500 .25 percent
