May 4, 2009
The S&P500 led the market with an increase of 3.39 percent, while the DJIA gained 2.6 percent and the NASDAQ rose 2.58 percent. This is the fourth positive day for the NASDAQ, and the second plus day in a row for the DJIA and the S&P500.
Todays pattern mirrors, in part, that of April 24, Friday of a week ago. Yet those moves were not as large. Then the S&P500 moved 1.67 percent, only half as much as this close, while the NASDAQ did not reach todays forward. move.
Moreover, the earlier event was weaker in another dimension because it followed the pattern 2/-1/+1/-1, shorthand for 2 advances after one decline, which followed a positive and an earlier negative day.
Todays chain 2/-1/+1/-2 – differs because its origin, five days ago, began with a two-day decline.
Only four other such closes exist, in 2007, 1996, 1983 and 1976. Furthermore, none of those came in nearly as strong as todays.
Fridays conjecture for today, based on the history of that pattern, resulted in a call for another positive day. That did occur. The scenario for Tuesday, also based on earlier experiences is positive, with history revealing three advances to one decline.
DJIA 2.61 percent
NASDAQ 2.58 percent
S&P500 3.39 percent