Prices remained at a near standstill. The DJIA added $.01, the S&P500 gained .17 percent while the NASDAQ increased by .52 percent. Thus we focus today on the history of such small changes, concentrating on the S&P500’s daily gains less than .2 percent combined with NASDAQ advances in the .5 to .6 percent range.
Our diagram shows 22 such days over the 4,600 trading days of the last five price cycles. With all but four occurring during bull markets, prospects of still higher prices are promising. Nevertheless, the frequency of these days near the 2007 top demands precaution. In fact, one happened on August 22, 2007 – just 30 trading days before prices turned down. Further, the next incident was on November 5, some 19 days into the following bear market.
In view of these factors, note that February 11, some 50 trading days ago, closed with this same configuration.
Turning to tomorrow, consider that the record shows 22 advances, and only 7 declines, on the day following this pattern.
DJIA .00 percent
NASDAQ .52 percent
S&P500 .17 percent
