July 11, 2012 Fifth Straight Loss
Five declines in a row, a run so rare, that only 8 other such closes have occurred in the past 37 years. Yet the last repeat happened just 37 trading days ago, on May 17th.
Losses were severe, with the NASDAQ dropping 5.28 percent; the S&P500 fell 4.57 percent and the DJIA 3.78 percent.
Yet values revived, recovering more than those sharp and rapid reversals, so that by July 3, the NASDAQ closed 7.13 percent above that low; similarly the S&P500 gained 6.10 percent while the DJIA closed 4.65 percent higher.
The table lists the dates of these eight previous occasions, and the percentage declines on each of those ‘fifth day’ negative runs. Notice how much larger all of these losses were compared to today’s more moderate markdowns.
Yet, on five of the following days, declines econtinued for the sixth straight session. These included our most recent repeat, on May 17, 2012.
DJIA -.38 percent
NASDAQ -.49 percent
S&P500 -.00 percent