August 20, 2008
The market finally scored a positive close for the first time this week. It was the first uptick for the NASDAQ since Thursday of last week.
But from the historical perspective, the analysis published over the past two days has not altered. With todays results, as on Monday and Tuesday, these patterns of closes have occurred mainly when prices were in a long run decline.
As described earlier, this is the seventh repeat, since 2000, of the sequence +1/-3/+1 for the NASDAQ and +1/-2/+2 for the DJIA and the S&P500.
As for the following day, in the past the DJIA and the S&P500 fell four times the next day, increasing only on three days. The NASDAQ had a slightly better record, with only three declines and four increases on the next day.
DJIA .62 percent
NASDAQ .20 percent
S&P500 .62 percent