May 9, 2008
Todays decline was the third this week, that together with Wednesdays sharp reversal, set the stage for the averages to post their first negative week since April 18.
So after three weeks of successive higher closes, we have to factor in a step down step; in terms of magnitude, however, the results were not as offsetting as in earlier weeks. The DJIAs fall was the fourth worst weekly performance, of its nine negative weeks, of 2008.
Similarly, the NASDAQ and the S&P500 declines were their third poorest of the year.
Possibly, the most optimistic viewpoint at this juncture is to note that these unwelcome results, nevertheless, left all three indices well above their lows of four weeks ago. Moreover, the line connecting the reversals in these weekly closes, from their 2008 trough of March 7, projects far below todays closes.
While that’s not the best news, it should be noted in addition, that today’s closing prices remain substantially above the levels existing when the current recovery started in the eleventh week of the year.
DJIA -.94 percent
NASDAQ -.23 percent
S&P500 -.67 percent
Note: A computer hang up caused the cancellation of the Thursday and Wednesday blogs this week; this, Fridays, blog was published on May 11.