For the eighth time this year prices moved up, after a losing day, that followed an up day, that came after a down day. In short, +1/-1/+1/-1 describes this chain.
Prices continued higher on just three of the following days; they fell on four following days.
These ongoing direction changes surely indicate investor uncertainty. Such doubts are natural after strong price surges that, in addition, posted new record highs.
Further, the continuing ambiguity of the Fed’s interest rate intentions clouds the future even more. Today’s Yahoo Finance, for example, calls attention to the upcoming Fed meeting on Wednesday, at which future interest policy surely will be on the agenda.
Continuing the earlier analysis of market changes, we add to that description that a three-day positive run preceded this current up and down chain. That happened just nine previous times over these last four up-and-down price cycles. Today’s diagram shows all but one happening in bull markets.
DJIA .73 percent
NASDAQ .83 percent
S&P500 .76 percent
