April 26, 2010 Sixth Advance for the DJIA – but Just

Closing up just  .01 percent, the DJIA squeezed out its sixth consecutive positive day. The NASDAQ, though, lost  -.29 percent and the S&P500 fell -.43 percent. This yields a pattern of  +6/0 for the DJIA and 0/-1 for the other two indices.  While five of these configurations are on the record, a case could be made that the DJIA’s position is not positive in a significant sense; thus today’s pattern is not very different from the three indices together posting declines.  And the market has experienced 406 of these since January 2000.But taking today’s slim  .01 percent DJIA at face value, it makes today’s result the 160th repeat of six straight advances, 16 of which happened since January 2000. The sequence was extended for the 7th day six times, but declined on 10 occasions. Yet the S&P500 moved higher on 14 days, declining on 2, while the NASDAQ record is up 12 days and down on four.Nevertheless, given the slim margin of the DJIA advance, the better judgment is to pass on today’s close, and not consider today’s record a meaningful platform for projecting future market changes.

DJIA                .01 percent                         NASDAQ      - .28 percent                     S&P500         - .43 percent

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