December 27, 2010 A Dull Session

Prices closed almost unchanged from the last session; but the DJIA ended down while the NASDAQ and the S&P500 inched forward. Thus today’s pattern of  -1  for the DJIA and  +2 for the other two is the exact complement of Friday’s configuration.  

Since this pattern occurred just 9 times before, no reasonable projection for the next day is meaningful.Considering the prices changes in the light of the holiday season, note that the very next day after the holiday close, prices moved higher in seven of the last ten years.

Based on the December record since 1990, the outlook for tomorrow is not as favorable. While the number of gains equaled the frequency of losses –with five of each- all indices suffered three straight losses in the last three years. 

DJIA                        - .16  percent

NASDAQ                   .03  percent

S&P500                   .05  percent

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