November 12, 2010 Coincidence or Crisis?

Don’t focus on losses suffered in the past two days, but do consider the pattern of this week’s price changes.

Both the DJIA and the S&P500 started and ended with two declines in a row, while their prices moved higher                                                                      on Wednesday. The NASDAQ pattern was slightly different, given its .04 percent rise on Monday. The only two                                                                   other closes, since 2000, having this pattern are highlighted on the diagram by vertical red lines.

11122010-d-and-s-down-2-up-1-down-2-nasda-down-2-up1-down-1.gif

Both happened immediately before prices turned down; both ended a period of rising prices.                                                                                               This -today’s-  third occasion need not follow the earlier disastrous price declines. Yet prudence suggests caution, while hope claims that parallels do not a forecast make.

 

DJIA                       - .80

NASDAQ                -1.46

S&P500                -1.18

 

Leave a Reply

You must be logged in to post a comment.