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July 11, 2008

This Blog Covers Week Ending July 11

Since May 30, these indices failed to post a positive week; instead they have fallen in each of the last six weeks. The NASDAQ has lost -11.2 percent in this period, whereas the S&P500 declined -11.6 percent. While the DJIA’s string of losses is shorter –only four, since it rose in the week ending June 13– it nevertheless dropped the greatest amount, -12.2 percent in the last six weeks.

The only good news in the latest data is that this week’s NASDAQ decline of -.28 percent is its smallest loss since the week ending May 30, and also its smallest weekly loss of 2008.

As a result, both the DJIA and the S&P500 are now below their weekly low point of this year, reached in the beginning of March. Moreover, Friday’s close is their lowest price since July 2006 — when both indices were rising. The NASDAQ, although it is still above this year’s low, is in similar circumstances, with the current close about where it stood in September 2006.

There have been just two times, before this Friday, in this century that the S&P500 fell six consecutive weeks. Both were followed by significant declines in market prices.

Going back to 1950, there were 14 such incidents; and all but two were followed by falling prices.

As for the next week, there are just four instances where the S&P500 fell seven weeks in arrow: in 1962 and 2001, these weeks were followed by declining prices; while in 1970 and 1980, prices fell further, but then started a substantial recovery.

Friday to Friday Change
DJIA -1.67 percent

NASDAQ……..- .28 percent

S&P500 -1.85 percent

This entry was posted on Sunday, July 13th, 2008 at 12 112008000000Sun, 13 Jul 2008 11:52:06 +0000 and is filed under Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.