With the NASDAQ scoring its third successive gain and the DJIA and the S&P500 losing ground for the first time after three straight up-days, we see a somewhat common pattern. The last occurrences were twice last November, one in September and one in June 2013.
These are more common in bull markets than when prices are heading down. Yet their frequency in the past three expansions is moderate, ranging only between .96 and 1.51 percent. The diagram shows many massed near turning points. Indeed one is at the top of the market on October 9, 2007.
Similarly, two happened 36 days and 9 days before prices turned down in March 2000.
This history leaves the outlook for tomorrow undefined: in the past gains on the following days were only a bit more frequent than declines.
DJIA -.13 percent
NASDAQ .31 percent
S&P500 -.01 percent
