May 12, 2010 —Prices Return to May 4 Level

A resilient market returned prices to near their May 4 level, reached just 6 trading days ago.  The NASDAQ leads the gains, rising 2.09 percent, while the DJIA and the S&P500 added  1.38 and 1.37 percent. It was the NASDAQ’s third consecutive up day although the two other indices have moved higher and lower on alternate days.

Today’s pattern has repeated 98 times (for the DJIA and the S&P500) since 1950; it is the 14th happening since January 2000.

Turning to the outlook for tomorrow, note that advances exceeded declines by a large margin in the past. The NASDAQ moved higher on 12 of the 13 replications of today’s pattern. The record for the DJIA and the S&P500 is nearly as good – with 11 advances and just 2 declines. 

DJIA               1.68 percent           NASDAQ       2.09 percent S&P500           1.37 percent

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