More meaningful than the small advances that pushed the DJIA and the S&P500 to new highs is today’s fourth advances in a row. With only 36 earlier closes over the last four up-and-down price cycles, 33 occurred during expansions.
Clearly this configuration is a bull market singularity.
Our diagram plotting these days reveals none happening during the 2007/2009 bear market; we see only three while prices fell during the 2000/2003 contraction.
With the market topping new highs almost daily today’s closing pattern provides some statistical support for the view that the future will see higher prices.
As for the following day, not surprisingly declines outnumber further advances. Yes, prices fell on all the next days during the 2000/2003 decline; however, the number of advances equals the total of losing days during the three expansions.
DJIA .42 percent
NASDAQ .09 percent
S&P500 .35 percent
