Another Down Day

November 5, 2007


The indices made a strong recovery from today’s lows, but failed to close on the upside.

The NASDAQ was off -.54 percent, the S&P500 shrunk -.50 percent and the DJIA was off - .38 percent.

The chart below shows how the three indices whipsawed in the last seven trading days.

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Lengthy chains of daily fluctuations like these are rare. There are only four repeats of this pattern for the S&P500 since January 2000, with a median loss of -.27 percent. While the DJIA and the NASDAQ indices had just two repeats, with median decreases of -.28 percent and -.17 percent, respectively.

Posted on November 5

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