The NADAQ finally turned down today, unable to continue its string of gains. Todays loss of 1.40 percent exceeds the 1.03 percent average decline occurring after five straight upticks. It is greater also than the two similar instances so far this year: minus .20 percent on January 16 and minus 1.15 percent in July.
Since January 2000, there are only five instances when a second decline followed on the next day, whereas the NASDAQ turned nine reversals into positive closes. The average gain of only .86 percent on those days is much smaller than the typical loss of minus 1.75 percent.
Both the DJIA and S&P500 declined for a second day in a row, with the former losing just .44 percent compared to the S&P500 decline of .69 percent.
Looking at the DJIA record since 2000 for three losing days in a row, there are 108 of these, with the average loss of .87 percent. On the positive side, there are 132 instances of advances after two down days, with an average gain of .89 percent.
A similar precedent exists for the S&P500, with 112 three straight loss trading days and an average decline of .92 percent, while there are 114 up days, with a .74 rise, after two successive declines.
This entry was posted on Thursday, October 11th, 2007 at 12 112007000000Thu, 11 Oct 2007 23:51:24 +0000 and is filed under Market Report. You can follow any responses to this entry through the RSS 2.0 feed.
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