The markdowns of the DJIA, the NASDAQ and the S&P500 after yesterdays gains yields a -1/-1/-1 pattern, a frequent combination seen some 483 days in this century. While this numerous history provides firm statistical support for projecting tomorrows closes, unfortunately, in the past, the following day is split just about evenly between a further gain and a loss.
While advances outnumber declines, they account for just 55 percent of the next day closes.
We draw attention to a further inability, to sort these happenings by bear and/or bull periods. While they accounted for 14 percent of the 2000/2003 decline days, these increased to 17 percent in the following recovery, and then to 19 percent in the 2007/2009 drop. However, since then the frequency comes to just 13 percent.
DJIA -.06 percent
NASDAQ -1.01 percent
S&P500 -.24 percent