The S&P500 added 2.55 percent since Tuesday, scoring the biggest three-day advance since January! There is more good news: this is the first three-day run up since April. Last, but not least, the interest rate of the 10 Year Treasury declined to 2.21 percent – a decline of 14 percent since yesterday.
That the market gains resulted from three successive plus sessions is another favorable development, since this pattern occurs more often when prices are trending up than when the trend is down. Our diagram shows these three day up streaks happening more than two percent of the time in bull markets, just about twice the rate when price3s are heading down.
The outlook for tomorrow continues favorable but with a caution. While positive days outnumbered declines 17:12 in this, since the 2009 bottom, expansion, they came to only 41 percent in the 2003/2007 bull market.
In April, the last time prices rose three days in a row, the market moved higher on the following day.
DJIA .77 percent
NASDAQ .76 percent
S&P500 .62 percent
