Small declines followed yesterday’s small advances, which in turn came after a good positive day. This pattern of minus-plus-minus is not quite common, occurring about as often in bull markets as in declines. Today’s diagram shows just when this combination has occurred during the last five price trends.
They deserve attention, though, because they cluster at turning points. Further, their frequency seems equal at market peaks as well as troughs.
Prices on the following day moved down somewhat less often than they increased, and except for the 2000/2003 decline, gains outnumber declines.
DJIA -.17 percent
NASDAQ -.98 percent
S&P500 -.29 percent
