December 19, 2011 Down Day – A Signal of Future Decline?

 

 

With the DJIA, NASDAQ and the S&P500 declining, the DJIA now has two straight losses, but the NASDAQ and the S&P500 are down only one day after last Thursday’s and Friday’s gains. Accordingly their pattern is -1/+2: minus one for today’s decline and plus two for their gains Thursday and Friday.

Only five other days, since 2000, share this combination. Our diagram identifies these with a red dot.

All but one of these closes share significant declines, impacting their prices shortly after posting a pattern like today’s. While the exact timing as well as the size of the losses remains unknown, the history behind today’s pattern requires compelling attention.

 

 

DJIA            -.84 percent

NASDAQ   -1.26 percent

S&P500       -1.17 percent

 

 minus-s-and-n-after-plus-2-and-minus-2-after-plus-1-djia.png

 

This entry was posted on Tuesday, December 20th, 2011 at 12 122011000000Tue, 20 Dec 2011 00:41:51 +0000 and is filed under Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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