Market Declines After Two Positive Closes

Another gain, on top of the previous two uptick days, evaded the market on September 20. The S&P500 suffered a .67% decline, steeper than the NASDAQ -.48% and the DJIA -.35%

The record shows that a third consecutive positive close occurs more often than today’s -1/+2 (one negative close after two straight gains).

The S&P500 experienced a third successive positive close 7.7% of the time since 1950, but dipped on the third day 5.7% of the time. The NASDAQ ratio is better, with three positive closes happening 1.85 times as frequently as the +1/-2 pattern. The DJIA has a similar record, but with a 1.23 ratio, the smallest of these three market indexes.

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