Todays advance is the second in a row, and following two successive declines, yields a combination seen just 35 previous times in this century. While these closes account for almost two percent of all days during the 2003/2007 expansion, they come to just .8 percent during the current cycle, and also to the identical .8 percent for the two contractions since 2000.
Prices tumbled on the following day more often than they increased, with the NASDAQ falling 23 times and increasing on just 12 days. The DJIA did a bit better, with a 20 loss and 15 gain record, while the S&P500 declined 19 times.
Yet these losses failed to stop the substantial gains at the beginning of the 2003 upturn, despite six of these negative repeats. Similarly, that expansion continued even through four further declines with the same pattern.
The same, seemingly contradictory pairing occurred during the 2007/2009 decline, when successive next day increases did not stem that contraction.
One final data point of interest for the following day: price increases exceeding plus one percent happened only three times, all during bull markets; only three declines deeper than minus one percent occurred, the last one, -3.44 percent, in 2010.
DJIA .60 percent
NASDAQ .51 percent
S&P500 .76 percent
