August 17, 2012 Prices Continue Higher
With the three indices scoring another gain, the pattern at the close was three consecutive increases for the NASDAQ and the S&P500, while the DJIA was up for the second day in a row. This combination is the 14th repeat since the beginning of 2000.
The diagram isolating these closes shows that eight of these days occurred in this expansion, since the bottom of March 2009. Further, the previous, 2003/2007 bull market saw three days with this pattern.
With just another three happening during the two declines in this century, it is plausible to conclude that this pattern, and the current market position, signifies higher prices in the future.
Yet, based on similar reasoning and counting, be prepared for price declines on Monday since nine of the last 14 repeats had losses on the following day.
Note that today’s gains verified yesterday’s projection of price increases today, making it the second day in a row that price predictions based on past repeats of frequency patterns proved to be correct.
DJIA .19 percent
NASDAQ .46 percent
S&P500 .19 percent
