USMarketView

February 5, 2008

Today’s S&P500 loss of -3.2 percent and the DJIA slump of -2.93 percent are the steepest since February 27, 2007. While the NASDAQ’s -3.08 percent plunge’s more recent forerunner is this past January 4, its next severe drop shares the February 2007 date.

Moreover, while the NASDAQ experienced 91 days (since January 2000) with declines worse than today, the DJIA had only 16 and the S&P500 comes in best with only 13 such sharp setbacks.

Looking at what happened on the day after, the DJIA scores best, with 11 recoveries and just 5 further declines; the NASDAQ has the worst record, with its 48 days of additional erosion outnumbering its 43 rebound days. The S&P500 comes in with 5 more loss sessions but has 8 days of springing back to higher closes.

The majority of these sharp devaluations resulted from, or caused, the sheer market drop between 2000 and 2002. While that may imply worse days ahead, those huge declines ceased once prices turned up and climbed to higher territory.

Tuesdays have a bad reputation in the market; while the reason for losses on Tuesdays is unknown, it is clear that large corrections do occur on Tuesdays. Today is Tuesday, February 27, 2007 was a Tuesday, and 4 of the 13 S&P500 deeper than 3.2 percent drops took place on Tuesday. So did five of the 16 DJIA and 23 of the 95 NASDAQ plunges. Well, tomorrow is Wednesday!

DJIA -2.93 percent
NASDAQ -3.08 percent
S&P500 -3.20 percent

This entry was posted on Tuesday, February 5th, 2008 at 12 062008000000Tue, 05 Feb 2008 18:29:28 +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.