Two rare events occurring today join to forecast the continuation of the current positive, yet weak, period of rising prices. First, the NASDAQ moved up, only for the second time in the last seven market days, and joined the four day plus streak of the DJIA and the S&P500. The record shows only eight such closes previously, in the past 13 years, and with all but three happening during the last two bull markets, we infer the continuation of the current trend of higher prices.
These days are identified on the diagram with open circles and open triangles.
The second positive signal is today’s very modest advances. Just eight previous sessions closed with gains this small. Further, all occurred during bull markets, with the last five since the March 2009 bottom. The figure plots these with solid circles.
With these two factors reinforcing each other, we project a continuation of current price advances. Yet the immediate outlook, for tomorrow, is not as rosy. On the following day, the S&P500 moved down as often as it moved higher. The DJIA, though, booked five gains against four losses. The NASDAQ shows the best next day performance, with six advances and only two retreats.
DJIA .11 percent
NASDAQ .30 percent
S&P500 .03 percent
