The DJIA, closing higher for the fourth session in a row while the NASDAQ and the S&P500 maintain their
alternate up and down days, continues to generate patterns seldom seen before. As a result, the number of similar, previous data points becomes smaller.
For example, todays combination has occurred just 12 other times, with four of these happening
since the beginning of 2000. This is down from yesterdays frequency of 26 overall and 7 in the past decade.
Focusing attention on the four closes experienced earlier, reveals they share a common positioning: they
appear near a local top that leads to a substantial decline in prices. The diagram identifies these four instances, plus todays close, with a circle.
While fundamental changes in business, economic and financial circumstances could be inducing this
pattern, the basis of our projections relies on the purely technical repeats of daily patterns and their association with market and price turnarounds.
As for the day following, yesterdays pattern suggested that prices would rise today. Continuing with this scheme, note that on all previous repeats of todays configuration, prices fell on the next day.
DJIA .27 percent
NASDAQ .78 percent
S&P500 .50 percent