This week ended with the momentum of two straight gains that enabled prices to return to Monday’s close. This was a turnaround from Wednesday, when the DJIA posted its fourth loss in a row.
The good news is that two back-to-back advances are bull market intensive; today’s is the 13th repeat so far in 2013. Gains occurred on seven of the following days; further, the median S&P500 gain for the next day was .62 percent, whereas the median decline was much smaller, at -.09 percent.
Today’s diagram reveals the concentration of two successive increases in times when prices are moving higher. Prices on the next day moved up only about a third of the time during the two bear markets; in the three up markets, however, the next day up closes ranged from 49 to 65 percent.
Finally, we can view the two up days in a row advantage as confirming that the current market still emits signals of an ongoing bull market.
DJIA .31 percent
NASDAQ .52 percent
S&P500 .39 percent
