July 2, 2012 A Rising Prices Pattern
At the close, both the NASDAQ and the S&P500 were up for the second day in a row, while the DJIA was down after Friday’s gain. In the past, for the 16 previous closes with this pattern in this century, 11 occurred while prices were on an upswing. This allows a conjecture: that prices will continue to move higher in the near future.
Such a projection, coming at this time, while the daily market gyrates up and down, is both welcome yet hazardous. Nevertheless, the data show this pattern favors a rising price trend by a factor of 10:6.
Further, the diagram indicates that on the following day, prices increased more than twice as often as they declined.
DJIA -.07 percent
NASDAQ .55 percent
S&P500 .25 percent