August 10, 2012 Unusual Patterns Continue
Here we have another instant of a closing pattern seen just twice before in the 62 year span of our data base. It is identical, except for the raw count, to yesterday’s combination of price changes. A further oddity is that these two ‘only previous occasions’ happened in 1972 and 1995, 40 and 17 years ago.
We show the S&P500 closing prices for these two incidents in separate diagrams. Whereas prices fell sharply, but nor for long in 1972, they continued higher without much of a pause in 1995.
While we noted before, that instances this rare fail to provide a basis for projecting future prices, note notice that recent closes display uncommon dimensions. That is a strange occurrence indeed: the fact that the market is providing a cluster of uncharacteristic closing patterns.
DJIA .32 percent
NASDAQ .07 percent
S&P500 .22 percent
