While the NASDAQ rose .75 percent, the DJIA and the S&P500 added only smaller fractions. Today’s pattern -two straight positive days following two consecutive declines- has occurred less than fifty times during the 4,436 trading days since the beginning of 1996.
Given their almost equal distribution over the last three bull markets and two declines, we suggest that this record leaves little to be said about the future direction of the current market.
Today’s pattern occurred last at the beginning of June, when the market posted its third largest advance of 2013. However, a mix of small gains and minor losses followed on the next day.
But the event previous to that, on April 22, yielded one percent gains on the following day.
DJIA .11 percent
NASDAQ .75 percent
S&P500 .20 percent
