July 24, 2012 Prices Fall Again Now Three in a Row
The record and our graph- shows just 57 other closes with three declines in a row since the beginning of this century. Most of these some 34- occurred while prices climbed higher, during the 2003/2007 and 2009/2012 bull markets.
Further, note that in these two periods, prices increased on the following day more often than they declined. On the other hand, and consistent with this drift, the number of price increases were just about equal to the number of declines during the two bear markets.
We noted, a few days ago, the inconsistency of these patterns: one day they signal higher prices in the future, and just as often, on other days the patterns are consistent with falling prices.
Accordingly prudence is required while these cross currents continue and if these patterns of frequency counts do reflect market direction. And so far, the unfolding days have not contradicted this approach.
DJIA -.82 percent
NASDAQ -.94 percent
S&P500 -.90 percent
