April 21, 2009
(Posted 4/22 at 2:30 PM)
Another up reversed Monday’s deep down, as prices shot up from the opening. It was almost a mirror image of the day before, except that todays gains were smaller than yesterdays losses. Combining both sessions, we find just 11 other such combinations. All these occurred since 1997, with eight happening since 2008.
Yet todays gains of 2.22 percent for the NASDAQ, 2.14 percent for the S&P500 and 1.63 percent for the DJIA, are far smaller than each of those earlier 11 resurgences. Moreover, all of these happened when prices were heading down, or were at the trough of that phase. This is shown in the graph below.
As for the next day, in the past the DJIA and the NASDAQ fell 6 times and moved higher 5 times, while the S&P500 had 7 decreases.
Todays advances are consistent with the historical record, described yesterday, which shows advances outnumbering declines by a substantial margin.
DJIA 1.63 percent
NASDAQ 2.22 percent
S&P500 2.14 percent