May 14, 2012 Decline Continues
The DJIA , NASDAQ and the S&P500 losses extended deeper than one percent as the market dropped again. (The NASDAQ actually increased the day before, but by a mere .01 percent!)
Our diagram shows that the majority of the 29 previous closes with this pattern are distributed almost evenly between rising and falling markets. But that prices increased on the following day twice as often as they declined.
With so many of these closes occurring at, or near, both the upper and the lower turning points, they fail to provide a basis for projecting the future direction of the market. Yet this distribution does allow the not unsensible inference that prices are approaching a turning point moreover since prices have been rising since early 2009, that the turning point will move prices down.
DJIA -.98 percent
NASDAQ -1.06 percent
S&P500 -1.11 percent
