With the S&P500 down for the second day while the DJIA and the NASDAQ down for the third successive session, we face another rare combination. Although its last repeat happened just a month ago, there are just two earlier repeats in the last 13 years. While this infrequency obviously hampers projections of future changes, we implement alternate market characteristics to provide useful insights.
Consider price behavior when the S&P500 declines two days in a row, as it did today. In this century, so far,
Prices change only moderately on the following day, and
Large daily price changes up and down- dominate declines.
We see these trends in the diagram, though the recent, 2012 successive up-and-down history is not as distinct in the earlier years of this century.
DJIA -.27 percent
NASDAQ -.70 percent
S&P500 -.41 percent
