Activity since October 28 -six days ago- leaves the NASDAQ and the S&P500 just about unchanged; while the DJIA came out ahead, the gain amounts to less than a half of one percent. Today’s diagram showing these six-day runs for the S&P500 reveals this the seventh such repeat this year.
It shows that substantial price regressions follow these declining levels of six-day changes. Yet, so far this year, such declines were not only brief, but moreover prices returned to their previous rates of gain. Nevertheless, given that the current expansion, now at 1,173 days since the last bottom, is already the longest of the last three bull market, the current drop deserves consideration.
Turning to today’s closing pattern –three successive up days for the NASDAQ, combined with single day losses for the DJIA and the S&P500- we note only 47 such combinations occurred over the more than 3,000 trading days since 1996. Looking at tomorrow, note that prices on the following day moved up as often as they declined.
DJIA -.13 percent
NASDAQ .08 percent
S&P500 -.28 percent
