July 13, 2012 Sixth Straight Loss
Though the daily losses continue, the record reveals the bottom is near. That’s true at least for the S&P500. It posted only 12 trading days in this century, so far at least, with more than five successive declines. There are eight instances like today, with six losses in a row; three closes of seven straight losses and just one, in October 2008, with eight successive declines.
But the DJIA and the NASDAQ history reveals twice as many long losing strings. They have 16 instances of six losses in a row and three closes of eight losses.
Yet the diagram shows these NASDAQ losing runs not clustering at upper turning points. Indeed, even including the bubble debacle of the early 2000′s, these long daily declines usually occur after the worst declines. Yet, the one exception is just before the last, October 2009 top: it shows a clear anticipation of the severe, 355 day decline to come.
DJIA -.25 percent
NASDAQ -.75 percent
S&P500 -.50 percent