Driving fast, celebrating the DJIAs extended run above the 14,000 peak, could lead to a pile up, according to the rear view mirror. All told, only 18 days closed above 14,000 that includes these last six trading days. Those other 12 closes all happened just before a sharp price drop.
Today is the first time ever that the DJIA posted four straight advances while closing above 14,000.
Of the 18 DJIA closes above 14,000 only 7 resulted in higher prices on the following day. And four of those days just happened since the end of last month.
Four of those 18 days occurred at the beginning of the 2007/2009 drop so these should not count among the good news days.
Consider also the pattern count: five gains in a row for the DJIA and the S&P500 while the NASDAQ moved higher following yesterdays decline. This combination has happened 49 previous times, with all but three during the 2003/2007 and since the last 2009 bottom. Prices moved higher on 46 percent of the following days.
Yes, that last count is a piece of good news: todays pattern meant bull market in the past.
DJIA .23 percent
NASDAQ .30 percent
S&P500 .18 percent