The NASDAQ fell for the fourth straight session – a rare losing streak, having just 116 repeats in the more than 4,300 trading days of these last four up and down price cycles. The good news, though, is that the most of these four-day losing streaks happened during bear markets. These amounted to four percent of all trading days during the 2000/2003 decline; they accounted for 2.3 percent in the following 2003/2007 bull advance.
Today’s close marks the 25th repeat of four in a row NASDAQ declines in this expansion – since the last bottom in 2009. The outlook for tomorrow is favorable: the NASDAQ moved higher on 18 of the next days, declining just 7 times so far in this expansion.
The DJIA and the S&P500 declined, after Friday’s up tick; earlier last week these averages had an up day that followed two losing days. This configuration has only three forerunners, one of which happened just days ago, on June 14.
Further, with all taking place during bull markets, as the diagram shows, we see the first suggestion in quite some time for rising prices in the future.
DJIA -.94 percent
NASDAQ -1.09 percent
S&P500 -1.24 percent
