The DJIA joined the parade of positive changes, moving higher for the second successive session. Thus today’s pattern is +5/+2/+5 –that is, five positive changes in a row for the S&P500, two back to back gains for the DJIA, and five successive advances for the NASDAQ.
This rare combination occurred just seven other times over the last five price cycles. A further uniqueness is that five of these took place in this expansion, since March 2009.
The diagram pinpoints these days; it shows, more of a coincidence than cause-and-effect, that one repeat happened just before the 2007 market top.
Nevertheless, note that this pattern is associated with prices trending higher: with all seven taking place only during bull markets, we see today’s repeat confirming the current trend of higher prices.
History indicates a negative outlook for tomorrow. In the past, prices declined on the day following this pattern more often than they increased. The S&P500 fell five times and increased just twice. The DJIA and the NASDAQ, however, had three advances.
So far this year, the S&P500 had four streaks of five straight advances; the last one occurred just days ago on April 25.
DJIA .32 percent
NASDAQ .49 percent
S&P500 .41 percent
