Focusing on the NASDAQ’s positive streak, as it closed higher for the 8th straight session, reveals a rosy outlook. Runs this long have occurred just 76 times since its listing in 1970; furthermore, today is only the NASDAQ’s fourth eight-day string since January 2000. (If you are looking at Monday, the next trading day, note that this index went on to 9 advances twice in this century. More on this aspect later.)
The diagram shows the NASDAQ with today’s and the three earlier streaks identified by vertical lines. On eyeballing the price curve immediately after these runs, we see further appreciation in the following days. These increases tend to continue without offsetting major corrections.
As for the day following, 45 streaks since 1950 went on to close higher, advancing for a 9th day; the last two happenings came in July 2009 and this past March; but the earlier 2005 run ended at number eight.
Yet with the market still far below April’s high, the uncertainty continues. And while the recent upswing has recovered lost values, the current uptick – the fourth in the last four months – still leaves prices nowhere near that April high.
DJIA .12 percent
NASDAQ .54 percent
S&P500 .08 percent