The good news is that prices continued higher, as the S&P500 added 1.28 percent to Wednesday’s plus 2.16 percent; equally impressive, the NASDAQ gained 1.17 percent following yesterdays plus 2.05 percent; and the DJIA sustained its earlier 2.27 rise with a further plus .95 percent. It is only the 51th instance of all three indices experiencing a spurt of 1 percent after gaining more than 2 percent the day before and the 16th since 1990.
Yet beware: all of these last 21st century pairs shared the onus of appearing during the two bear markets of 2000/2003 and 2007/2009.
Further, record of the day following todays pattern of two gains after a run of three declines, shows near twice as many negative days as advances. Only the S&P500 diverged from that ratio, with only 19 decreases compared to 14 further upturns.
However, should this rally extend to a third straight increase, it will add strength and continuity to the existing affirmative expectations.
DJIA .95 percent
NASDAQ 1.17 percent
S&P500 1.28 percent