Todays diagram shows how closely recent prices trace the S&P500 closes of the first five months of this year. It reveals that though the rate of acceleration is slowing, it has not declined to the extent of the April to May retreat. Instead, the S&P500 remains in the 1400 to 1450 range.
Now with the presidential race behind us, and the ravages of Sandy on the mend, we see no reason for the market to continue marking time. Of course, as always, the end of year personal tax considerations may enhance any downward pressure on prices.
Todays pattern of two gains after one loss has occurred 94 times in this century. Each of our three market averages has distinct characteristics for the following day. The DJIA moved higher 57 percent of the time, while the S&P500s gain ratio came to 48 percent and the NASDAQ trailed with gains on only 43 percent of the following days.
DJIA 1.02 percent
NASDAQ .41 percent
S&P500 .79 percent
