Prices declined a bit after yesterdays surge, ending a two day winning streak. It is the 27th repeat of this pattern since January 2000. Yet gains continued on the following day 17 times, with further losses experienced on 11 days. Notably, todays pattern is associated more frequently with rising markets: 23 occurred during the 2003/2007 and 2009/today bull markets. And on the following day, the NASDAQ increased 14 times, the DJIA 15 times and the S&P500 16 times.
Further, these results continue the recent drift of patterns and changes seen more often in rising than falling markets.
Other statistics also support an outlook of further appreciation. At todays close, the S&P500 stands at 93 percent of its last highest close in October 2007 whereas at the top of that expansion it had recovered 103 percent of its 2000 high. The DJIA did even better, ending at 127 percent of that 2000 top. Of course the NASDAQ had not regained its go-go high, and still hangs far below that fabled top.
Yet today the NASDAQ stands at 110 percent of its highest 2007 close. Comparable performances for the DJIA and the S&P500 require advances of 772 and 267 in these indices!
DJIA -.16 percent
NASDAQ -.38 percent
S&P500 -.21 percent