Be aware that today’s robust advance on the heels of yesterday’s losses is a feature of bear markets. Specifically of the 44 incidents since 1997, 31 came while prices were heading down. Our diagram reveals their incidence at less than one percent during bull markets.
Further, one such combination happened 42 days before the 2007 top.
Yet with so many of these days in advance of market bottoms, such large back-to-back changes in opposite directions changes could be a signal of rising prices in the future.
DJIA 1.08 percent
NASDAQ 1.60 percent
S&P500 1.49 percent
