The market’s new highs is the eye catching news, of course, but focus also on today’s gains. They are the largest one day advances since the first trading day of the year.
Yet such increases are far from rare: 265 have occurred in this century. These account for almost eight percent of all trading days since the beginning of 2000.
Strangely enough, though, these combinations happened more often in bear markets, accounting for 12 and 13 percent in the last two major declines.
The 2003/2007 expansion rate is only 3.7 percent, while they amount to 6.4 percent of all closes since the March 2009 bottom.
Today’s pattern of three straight advance is the 75th repeat in this century. In the past, the following day saw just about as many declines as gains.
DJIA .88 percent
NASDAQ 1.83 percent
S&P500 1.22 percent