September 16, 2011 Fifth Gain in a Row
The markets positive roll continues, realizing the fifth straight advance for the DJIA, NASDAQ and the S&P500. Further, these sequences cluster in bull markets. Yes, some appear when prices are trending down, but the large majority arise in bull markets. For example, consider todays close: it is just the 11th repeat since 2000 of five up-ticks in a row for these three indices; only one came when prices were heading down. The other nine occurred during the 2003/2007 and the 2009/2011 upturns.
But be aware, because this configuration of all three indices is a unique and arbitrary sampling, and one that applies only to the DJIA, the NASDAQ, and the S&P500. Their spillover to the entire market is without guarantee.
Further, the apparent association of these runs with market advances holds only when all three indices share this simultaneous string. The record shows many closes where only one, or two, of these indices enjoy lengthy positive runs these however have no relationship with rising or declining price trends.
The market confirmed yesterdays projection for further gains today. The outlook for the following day, Monday, shows even odds for declines and advances.
DJIA .66 percent
NASDAQ .81 percent
S&P500 .57 percent