Recent days are dominated by unusual daily changes. Today’s pattern, for example, consists of two declines in a row for the DJIA and the S&P500, while the NASDAQ closed down for the fourth straight day. There have been only seven other such days in the more than 4,000 trading days since 1996. Further, the record shows only 16 such days between 1950 and 1996.
Additionally, five of the last six trading days, have frequencies of less than one percent. The usual combinations of daily ups and downs for these three market indexes have frequencies as high as 15 to 20 percent.
Projections of future prices cannot be based on such limited data. We report these unusual frequencies without further comment; we believe though that this situation deserves attention.
DJIA -.41 percent
NASDAQ -.63 percent
S&P500 -.51 percent
