September 6, 2012 Strong Advance
The S&P500 jumped 2.50 percent, an increase exceeded only 97 times in this century. Similarly, the NASDAQ, up 2.18 percent, ranked 260th in size since the beginning of 2000; and the DJIA’s gain of 1.90 percent stands in 165th place in the more than 3,000 trading days in this century.
Further, today’s pattern -two gains in a row for the DJIA, and a single advance for the NASDAQ and thee S&P500- is the 21st repeat since the beginning of 2000.
A significant fact: the average daily change of this pattern has been 2.16 percent in this century, quite close to today’s 2.18 percent. While the average for the S&P500 of 1.57 percent and for the DJIA’s 1.36 percent, are equally close to today’s large changes.
Our diagram shows ten of these closes occurring during the 2000-2003 decline, and five since the 2009 bottom.
On the following day in the past, declines outnumbered gains by a margin of 13:7.
DJIA 1.90 percent
NASDAQ 2.18 percent
S&P500 2.50 percent
Yet note this caveat: Almost all of these large gain days happened while prices were trending down — as shown for the S&P500 on the following diagram.
