Substantial gains for the second day in a row sent prices to near new record levels. As it is, the S&P500 closing at 1872.25 reached 99.69 percent of its high on March 7.
Today’s pattern –two advances following two declines- last occurred on February 27. That next day saw the DJIA and the S&P500 moving higher for a third successive advance; but the NASDAQ moved down.
This combination occurs almost at the same rate during bull markets and bear markets. Yet, as the diagram reveals, this is a rare pattern, seen less than one percent of the time.
On the following day, prices tended to move higher more often than they declined.
DJIA .55 percent
NASDAQ 1.25 percent
S&P500 .72 percent
