October 13, 2008
The three indices soared more than 11 percent today! The DJIA and the S&P500 set new records, eclipsing their previous highest daily gains, set on October 21, 1987. The margin is greater by more than 2.5 percentage points for the S&P500 and by a full percentage point for the DJIA. The NASDAQ, however, while not setting a new high water mark, earned todays high mark, at 11.81 percent.
The NASDAQ greatest gain ever is 14.17 percent. This occurred on January 3, 2001, and that could be a warning. For at that point, the NASDAQ was on its way to an historic catastrophe but still had some way to go, before finally starting its recovery.
On the other hand, the DJIA as well as the S&P500 were near the end of their down moves, and near the start of their recoveries, when reaching their previous records.
DJIA 11.08 percent
NASDAQ 11.81 percent
S&P500 11.56 percent