August 27, 2012 NASDAQ Up But DJIA and S&P500 Reverse
While the NASDAQ moved up for the second day in a row, the other two averages continued their see-sawing, declining after closing higher the day before. Combining this combination with the single increases of all three indices on Friday, yields a pattern seen just 15 previous times since the beginning of 2000.
Note that all of these occurred after the market touched its 2003 bottom. Moreover, all but one took place during the 2003/2007 bull market and since the 2009 bottom. Thus this pattern definitely favors good times and, accordingly, we project a future with prices continuing to move higher.
Our diagram also shows that prices on the following day moved higher [green triangle] near twice as often as they declined [red circle].
DJIA -.25 percent
NASDAQ .11 percent
S&P500 -.05 percent
