Prices declined today – as expected after four straight advances. The good news, though, is their negligible size. The S&P500 was shaved just -.11 percent – a far smaller dip into red ink than the loss after four straight gains experienced in previous bull markets. The median declines for each of the last three bull markets are -.72 percent, -.55 percent and -.74 percent. Comparable declines -after four advances- for the bear markets are -1.19 and -1.79 percent.
The diagram pictures these facts. It shows quite clearly what appear to be the structural differences between expanding and declining markets.
Today’s results, accordingly, lead to the belief that the price advance will continue – even though the age of this bull market -1,312 trading days- make it ripe for a significant decline.
DJIA – .25 percent
NASDAQ – .28 percent
S&P500 – .11 percent
