Sharply rising prices and today’s pattern go hand in hand. There were just three of these since 1998. Our diagrams show the S&P500 just previous to, and several months after (1) a loss, that (2) followed a gain, that (3) came immediately after two losing days of the DJIA and the S&P500. (The NASDAQ had three down days.)
We note that each happened during bull markets; that today’s repeat is the patterns second occurrence this year.
While presenting these facts in today’s report, we add the caution that this finding is an empirical or technical finding. We have made no attempt to find a theoretical reason that explains why prices accelerated after this pattern of closes.
DJIA -.47 percent
NASDAQ -.25 percent
S&P500 -.36 percent
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August-9-2013-Perspective-after-decline-after-gain-after-two-declines
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