USMarketView

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

August 1, 2012       Market Declines for Third Day

While prices fell for three straight sessions some 57 times in this century, only a few posted changes quite this small.  Take the S&P500: it has just four other closes as small as -.29 percent. Three of these occurred in 2003, in February, May and November. The last one happened this year, on May 24.August 1, 2012       Market Declines for Third Day

While prices fell for three straight sessions some 57 times in this century, only a few posted changes quite this small.  Take the S&P500: it has just four other closes as small as -.29 percent. Three of these occurred in 2003, in February, May and November. The last one happened only days ago on July 24 while another closed with this pattern on May 24.

Our July post described this issue and noted the uncertainties surrounding this pattern.

The DJIA and the NASDAQ show this same history but with a slightly more  frequent repeat. The DJIA has eight other closes while the NASDAQ shows thirteen.

DJIA -.26 percent

NASDAQ       -.66 percent

S&P500         -.29 percent