Losses twice as deep as yesterday pushed the market down for the second day in a row. The bad news is the growing concern of further losses resulting from the belief that the Fed will let interest rates rise.
Yet the characteristics of today’s changes correlate more with a bull market than with declining prices.
Our diagram illustrates that bear markets have a higher proportion of two losing days in a row than when prices are trending higher.
It shows also that the average S&P500 loss, when prices decline two straight days, is near twice as sharp in bear markets than bull markets.
These facts allow a more upbeat outlook, offsetting the pessimism in the face of possible rising interest rates.
DJIA -1.43 percent
NASDAQ -1.27 percent
S&P500 -1.38 percent
