May 11, 2012 An Upswing Pattern
THE DIAGRAM
May 11, 2012 An Upswing Pattern
With the NASDAQ up after three declines, and the DJIA as well as the S&P500 closing higher for the second day in a row, this close returned for the 24th time since the beginning of 2000. Our diagram positions these closes over the past four down-then-up price cycles.
Note that the 15 of the past 23 repeats occurred when prices were moving higher during the 2003/2007 and the 2009/date upswings. Further, that another, further price increase happened on 10 of these following days.
Continuing this division between ‘good’ and ‘bad’ times,’ this pattern’s following day history rises from 13 gains:10 losses, overall, to 10:5 for the two upswings. It falls to 4 gains:5 losses for the two declines of 2000/2003 and 2007/2009.
We call this history an ‘upswing pattern’ since most of these days happened while prices were trending higher. Of course we must remember the usual disclaimer, that was the ‘certain’ past as we attempt to foresee the uncertain future. Nevertheless, this experience can support a projection of higher prices ahead.
DJIA .64 percent
NASDAQ .32 percent
S&P500 .36 percent