Though prices fell again, the closing pattern of the past four trading dates provides grounds for optimism. As our diagram shows, the combination of a losing day, that follows an update, which occurs after two successive increases, is not just a bear market happening. Its frequency, at .5 percent of the time, is the same whether prices are trending up or moving down.
Further, they appear more often at the end of a sequence of losing days, than they do at local market tops.
Therefore, these last four days provide reason for believing this market is at a pause, and not necessarily poised at an immediate and substantial decline.
DJIA -.03 percent
NASDAQ -.50 percent
S&P500 -.20 percent
