March 3, 2011 Largest Gain in Months

March 3, 2011                 Largest Gain in Months

 

 

Prices soared at the opening bell and stayed near that high all day. The DJIA advanced  1.59 percent posting the biggest one-day advance since last November 18. The S&P500 increased 1.72 percent on the day, its best increase since December 1. The NASDAQ closed 1.84 percent higher than yesterday; that was its largest increase since the beginning of February.

 

Today’s closing pattern of  +2/-1 for the three indices has come across the tape 86 previous trading days since the beginning of 2000. However, in the past, the there was a more or less even distribution on the following day.

 

 sadj-after-two-gains-following-a-loss.gif

 

 

 

The diagram differentiates the four up and down phases of the S&P500 since the start of 2000. The red markers denoting losses and the black pluses gains, no apparent configuration is possible except the same number of gains and losses regardless of the market’s up and down trends.

 

Yet there is one exception: the current upturn so far has 9  advances but only 3 declines.

 

 

DJIA                1.59 percent

NASDAQ       1.84  percent

S&P500           1.72 percent

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