The DJIA scored its largest gain in over a week, rising .50 percent; the NASDAQ and the S&P500, also had their best day since Friday. The NASDAQ gained .76 percent and the S&P500 rose .63 percent. Whereas the DJIA increase is the first after two losing days, the other two indices moved higher after yesterdays decline.
We have seen this pattern just 16 times since the turn of the century. The diagram shows these closes. With the vertical lines marking the changes in the markets direction, it seems that this configuration of closes favors good times.
Moreover, on the following day, price corrections were more frequent than advances. Yet with just 16 data points and the small differences between the number of up and down days 9 declines and 7 increases- these data fail to provide meaningful projections of tomorrows price changes.
Nevertheless, the diagram marks the following day declines in red, and the rising days with a blue X.
DJIA .50 percent
NASDAQ .76 percent
S&P500 .63 percent