October 16, 2008
The first positive close since Monday generated increases ranging from 4.25 percent for the S&P500 to 5.49 percent for the NASDAQ. The DJIA gained 4.68percent. This is consistent with the results of the past, when these indices dropped as steeply as yesterday. On October 20, 1987, the day after the sharper than -20 percent fall in the DJIA and the S&P500, index prices increased more than five percent.
The NASDAQ comparison yields different result. First, this index fell more than -8 percent six times since 1987; second, the index fell twice on the next days; and finally, two of the gains were substantially greater than today, while two were smaller.
As for the following day, that is, the parallel situation as tomorrow, both the DJIA and the S&P500 rose more than 9 percent. The NASDAQ, on the other hand, came in with three losses, one as deep as -4.49 percent, and three gains. Two of the latter exceeded seven percent.
DJIA 4.68 percent
NASDAQ 5.49 percent
S&P500 4.25 percent