May 20, 2008
Negative from the opening bell, all three indices suffered setbacks; losing almost a full percentage point, both the NASDAQ and the S&P500, nevertheless, fared better than the DJIAs drop of -1.53 percent.
The market seems to be following the pattern of recent activity described yesterday: a few days of relatively minor changes followed by a close in excess of minus, or plus, one percent.
Todays decline comes just four days after all three indices enjoyed significant gains. This, in turn, happened subsequent to three other days of mild changes. The same mold continues into the recent past: a major move (that is, near or in excess of a one percent change in either direction) after three or four days of relative calm.
Another feature worth observing is the diversity in the direction of daily change of each of these indices. While all three fell today, it was the first negative close for the S&P500 in four sessions. On the other hand, it was the NASDAQs third straight setback. Meanwhile the DJIA, over the same period, had a series of alternate up and down days.
Such divergences are not at all frequent in the daily closings of these indices.
DJIA -1.53 percent
NASDAQ -.95 percent
S&P500 -.93 percent