The S&P500s decline joined the second straight loss of both the DJIA and the NASDAQ index, resulting in a close experienced just 14 times since 1950. It is the 9th repeat in this century. A brief look at this recent history allows an optimistic view for higher prices.
In the past, advances outnumbered declines 6:2 on the following day. Further, the diagram shows this pattern happening mostly during the 2003/2007 expansion. Note also that the only repeat in the 2007/2009 contraction hit just before the end of that trend, that soon thereafter, prices turned higher; and that its most recent appearance, in July 2010, marked the end of a short price correction.
DJIA -.46 percent
NASDAQ -.70 percent
S&P500 -.40 percent
