The DJIA, down 1.07 percent, while the S&P500 and the NASDAQ lost -.89 percent and -.57 percent, produced the third deepest decline of the year. This followed the two earlier losses of January 13 and January 2 by just 8 and 15 trading days. Today’s decline is the fourth such downturn experienced in the last 28 days.
To see that this combination is not all bad news, consider the occasions of losses this sharp since the beginning of last year, January 2013. Today’s diagram marks these days with a large red dot; there are eleven altogether. But the good news is that eight of these –that is about three out of every four- came when prices were at, or near, local bottoms.
There is good news for tomorrow as well, since more than 60 percent of the following sessions ended with gains.
DJIA -1.07 percent
NASDAQ -.57 percent
S&P500 -.89 percent
