The many recent down signals and negative sessions, we see the first sign of higher prices ahead. Today’s decline, following three gains, that came after a single decline, matches a pattern that in the past occurred more often in bull than in bear markets.
Our diagram identifies these closes with a green triangle or a red circle. Green when prices increased the next day and red when they declined.
These up and down days happened far more often during rising markets than when prices were heading down. These accounted for 2.3 percent, 2.4 percent, and 2.5 percent of all days in the last three bull markets; they occurred just 1.5 percent and 2.3 percent during declines.
Yes, the differences may not seem large, but they, nevertheless exist. Moreover, given the many negative sessions and adverse expectations, we hasten to present this indication of better times ahead.
DJIA -.76 percent
NASDAQ .00 percent
S&P500 -.43 percent
