Stability followed yesterdays deep losses; the NASDAQ moved up .15 percent while the DJIA and the S&P500 fell a further -.34 and -.12 percent. This NASDAQ gain reveals the littleness of these changes, since only 850 other positive days in the entire history of this index are smaller.
Todays pattern, two straight losses for the DJIA and the S&P500, coupled with the NASDAQ gain after yesterdays loss, is only the 20th repeat in the last 12 years. Of these, the 2000/2003 decline had ten, while the following bull phase had eight. Accordingly, this pattern does not imply either a continuation or a reversal of the current trend of rising prices.
In the past, eleven of the following sessions moved higher, with the other eight days in the red. However there is a substantially difference between the bear phase with an even number of plusses and minuses- and the following bull market. It had only two advances but suffered six losses on the next day.
DJIA -.34 percent
NASDAQ .15 percent
S&P500 -.12 percent