December 15, 2010 A Down Day

  

Prices of all three indices lost ground today – that’s a first, since December 1 at the end of each day, at least one index closed in the positive column. Further, the DJIA and the NASDAQ now have a series of up and then down days.

Those events, when all three indices move up and then down in lockstep, have not been uncommon over the years: today’s is the 193rd since the start of 2000.

As for projecting this pattern, to see if it favors rising or falling price trends, these runs occur almost evenly in upturns and downturns.

The same conclusion applies to forecasting the following day. Although the record shows that in the next session 100 gains outnumber the 92 declines, these again, are distributed almost evenly over the two trends.

 

DJIA               - .17 percent

NASDAQ       - .40  percent

S&P500           – .17 percent

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