Prices moved sharply higher during the day, but then backtracked. Nevertheless prices closed on the positive side, but these gains fell short of negating Tuesday’s substantial decline. The DJIA moved up 1.18 percent, the S&P500 closed 1.05 percent higher while the NASDAQ languished at plus .84 percent less than half of yesterday’s decline.
Summing up the last four trading days, the pattern for the DJIA comes to +1/-1/+1/-1. The NASDAQ and the S&P500 sequences now stand at +1/-1/+2. With only four such days overall, with three of these since January 2000, any generalizing about tomorrow’s market lacks substantial confidence.
The record shows these three indices declined on each of the succeeding four sessions. Nevertheless, everyone of these happenings occurred during bull markets, and accompanied a trend of rising prices.
DJIA 1.18 percent
NASDAQ .84 percent
S&P500 1.05 percent