August 13, 2012 Diverse Changes: What Do They Mean?
The focus of our analysis is on three indices: the DJIA, NASDAQ and the S&P500. Most of the time, they change in the same direction, and with the same frequency. Today, however, each of these marched to a different tune. The S&P500 declined, the DJIA closed lower for the second day in a row, whilethe NASDAQ moved higher for the third straight day.
This pattern happened just three other times since 1950: in 1974, 1975 and 1985.
Further, yesterday’s pattern and the day’s before were even more infrequent, occurring just twice, in 1972 and 1995.
While we have not discovered a relationship between these infrequencies and future prices, an alert is warranted.
DJIA -.29 percent
NASDAQ .05 percent
S&P500 -.13 percent