On the third straight up day, the DJIA closed higher than its previous top, just before the market turned down in October 2007. Three gains in a row have occurred 74 previous times in this century. Their happenings are very bear/bull market related they appear twice as often when the trend of prices is up. Our diagram shows their clustering toward, and at, the end of the 2007 growth period.
Further, prices fall on the following day during bull markets, whereas they tend to move higher when prices are moving down.
Accordingly, celebrating the good news of the new DJIA high deserves some caution, because history reveals a future of decline rather than further growth.
DJIA .89 percent
NASDAQ 1.32 percent
S&P500 .96 percent
