February 28, 2011 Market Advance Continues
The DJIA and the S&P500 moved higher for the second day in a row. While the NASDAQ also closed higher after being in the red most of the day, its gain was just .04 percent. The DJIA had a more robust day, gaining .79 percent; the S&P500 moved up .56 percent.
Accordingly, their pattern at the close comes to s +2, whereas the NASDAQ count is +3. Only 8 other sessions since the beginning of 2000 have this pattern. The number for the entire record is 34.
The diagram plots the S&P500 over the past two cycles, and identifies the 8 positive days with a red X. While the evidence is not strong, note that these days occurred more often when prices were moving higher.
Further, all of the earlier incidents took place substantially before the market reached a turning point. Therefore, this pattern allows projecting further price increases before values top out.
AS for tomorrow, the past does not offer much support for another gain. The record reveals that the NASDAQ and the S&P500 had three times as many declines as advances; the DJIA notched an even number of gains and losses.
DJIA .79 percent
NASDAQ .04 percent
S&P500 .56 percent