June 21, 2012 Third Repeat since Early May
Today’s pattern -the DJIA and the S&P500 down for the second straight day while the NASDAQ fell after yesterday’s advance- happened twice before, on May 4 and May 15. This pairing is quite unusual given that only 29 other such closes occurred during the past 13 years.
The diagram locates these earlier days, using green triangles to show advances on the following day; the red circles indicate further losses. Overall, gains outnumber losses two to one; with the last two May occurrences declining the next day.
We point out several items of interest. Rising markets have a larger proportion of these closes, while price changes are larger when prices are falling.
Nevertheless, not much evidence exists to allow a needed projection, given the sequence of recent ups and downs, showing the direction of prices in the near future.
DJIA -1.96 percent
NASDAQ -2.44 percent
S&P500 -2.23 percent
