The good news is that the market finally closed out of the red, but this first up day in a week yielded only modest gains. The DJIA’s .36 percent gain comes considerably below its post 1996 median advance of .56 percent. Similarly, the S&P500’s median of .60 percent is a good deal better than today’s .35 percent. Even the NASDAQ’s higher .70 percent failed to equal its .75 percent daily median gain
Today’s combined performance of these three averages stands in 957th place from their best day since 1996. Only 230 days had smaller gains.
Thus it is quite proper now to review the seven-day advance earlier this month, to consider whether those gains borrowed from the future; whether they have some meaningful responsibility for the last five losing days.
Today’s diagram compares this positive run -in orange- with this year’s three earlier seven-day advances. It shows prices 12 days after the September sequence, now, at nearly the same level as in March and July, though it is lower than the January profile.
Thus it would not be meaningful to belief these recent losses the direct result –or pay back- of that earlier advance.
DJIA .36 percent
NASDAQ .70 percent
S&P500 .35 percent
