July 6, 2012 Pattern is Third Repeat Since Early May
Two losses of the DJIA and the S&P500 combined with a single day’s decline of the NASDAQ must by now be a familiar refrain. Today’s close is the third such repeat in recent months. Whereas only 34 such combinations occurred in this century, today’s close follows the most recent one on June 21. And that one came after the other two in early May.
An extraordinary situation, given that the record shows only 34 such closes since the beginning of 2000.
However, our search fails to reveal a reason or a cause and effect relationship between this combination and other, explanatory facts. In short, while history reveals this run as unusual, we nevertheless fail to find an explanatory relationship for this uncommon repeat.
Prices moved higher on the following day after each of these last three repeats.
DJIA -.96 percent
NASDAQ -1.30 percent
S&P500 -.94 percent