August 2, 2012 Further Losses

August 2, 2012       Further Losses

 

The three indices –DJIA, NASDAQ and the S&P500- closed lower for the fourth straight session, a situation seen only 18 previous times in this century. Further, with the most recent repeat of just last Tuesday, these continuing negative runs cannot but yield apprehension of what the future holds.

It’s important to distinguish the situation of all three of these averages posting runs of falling prices from it hitting any one index. The NASDAQ, for example, has 83 repeats of four losses in a row. The DJIA and the S&P500 have 72 and 70 since the start of 2000.  

Similarly, the S&P500, for example, has more than 450 days of four losses in a row since 1950; only 48 of these are accompanied by four straight declines of the DJIA and the NASDAQ.

 

DJIA               -.71 percent

NASDAQ       -.36 percent

S&P500         -.75 percent

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