Though the Dow’s recent up day record is better than the NASDAQ and the S&P500, its advance is substantially less than those two averages. Further, the pattern of three consecutive gains for the DJIA combined with just one up day for the NASDAQ and the S&P500 is quite rare. Only 11 occurred over the last five price cycles, since early 1996. While four of these came during the 2000/2003 decline, and today’s is the first for this bull market, they averaged .28 percent of the time in the two previous expansions.
Our diagram plots these closes; it fails to reveal any consistency with respect to turning points. Yet the outlook for Monday is favorable; in the past prices moved higher on nine days, and declined only once.
DJIA .26 percent
NASDAQ 1.15 percent
S&P500 .48 percent
