November 5, 2008
Dropping by more than minus five percent, the market continues its seesaw of one step forward and two steps back. Except for the NASDAQ, these indices have changed direction ten times in the last twelve days. Yet the NASDAQ action is part of the up-then-down pattern as well but in larger steps. Its loss today comes after six straight gains; and these succeeded five losing sessions in a row. The net result is a loss of -88.39 points, or some -4.99 percent, over the last 12 trading days.
Losses deeper than minus five percent have hit these indices simultaneously only eight times before today. All of those occurred either as the market was about to drop, or as prices had hit bottom already. And three of these days were this year, between the end of September and the middle of October.
Yet on the following day, the indices closed higher every time but one. That decline is the recent one of October 8, just 20 days ago, as prices fell for the seventh consecutive session.
DJIA -5.05 percent
NASDAQ -5.53 percent
S&P500 -5.27 percent