May 9, 2011 Advance Continues
With the prices of these three indices rising for the second session in a row, consider the characteristics of todays pattern. The record shows 206 repeats over the past 12 years these amount to 7 1/4 percent of the more than 2,800 trading days since December 2000.
Now, consider only those two-day pairs with gains equal to, or less than, todays changes of .36 percent for the DJIA, .55 percent for the NASDAQ, and .45 percent for the S&P500. The total number then reduces to just 21 previous pairs.
The result of this allocation reveals that just one of these 21 days has occurred when prices were declining, while the other 20 took place when the market trend was up. Seventeen took place during the 2003/2007 expansion, while three others before today- came after March 2009, the beginning of the current bull market.
Thus, the history of todays pattern reveals another likeness of the current market to times when prices were on the rise.
DJIA .36 percent
NASDAQ .55 percent
S&P500 .45 percent