January 12, 2011 Large Gain – Second Strongest in 2011
With the S&P500s plus .90 percent leading the way, prices scored their best advance in eight trading days. The NASDAQ gained .75 percent and the DJIA moved up .72 percent.
Todays performance by the DJIA and the S&P500, moreover beat all other gains since December 2, some 28 trading days ago. The NASDAQ, because of its recent stronger daily movements, posted its second largest addition in 18 days.
By now, the NASDAQ has recovered 97.6 percent of its 2007 peak, adding some 17.5 percentage points since the beginning of September. The S&P500 took second place, recovering 12.0 percentage points while the DJIA picked up only 9.5 percentage points over the past four months. Furthermore, these two indices at this time have regained only 82 percent of their October 2007 highs.
Todays pattern three advances in a row for the NASDAQ and two successive gains for the DJIA and the S&P500- has occurred 43 times since 1950 with 7 counts thereafter.
Looking forward to Thursday, the odds, based on this patterns history, favor the negative side, with the NASDAQ showing just two gains and five losses. However, yesterdays projection grounded on the same record, also had slightly more declines than advances, but obviously underestimated the markets strength.
DJIA .72 percent
NASDAQ .75 percent
S&P500 .90 percent