Consider the diagram – it shows this year’s daily closes of the S&P500 and highlights today’s, and the nine other days, when losses exceeded 1.31 percent. Note that three occurred when prices hit intermediate lows just before the market resumed its acceleration. Two happened just before these temporary halts and price continued their declines after only three such days.
Some further facts deserve attention. These sharp reversals come in pairs: April saw two, on the 15th and the 17th; the three in June happened on the 5th, the 19th and the 20th; August had two, on the 15th and the 27th.
Today’s is the 106th such deep loss of this bull market; these account for some nine percent of the 1,175 days since the March 9, 2009 low. Their median loss comes to -1.97 percent, about one and half times deeper than today’s decline of -1.31 percent.
Finally, on the days following such sharp declines, the median price change turned out to be positive, though small, at plus .27 percent.
DJIA -.97 percent
NASDAQ -1.90 percent
S&P500 -1.32 percent
