Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

One day wonder?... Or more to come?


That wasn't your average, every-day, up day folks!


The NDX scored the largest up day of the year and the biggest one day gain since the November 2003 low. Now we're left wondering whether the gains were just a "one day wonder" OR did the index make a significant low? Only time will tell. However, there is one certainty: the nature of yesterday's gains and the days surrounding it strike an interesting comparison to the February and March 2003 lows. The chart below explains:

Alright Hoofy, don't get too excited just yet! Over the next week, we should get some sort of a "test." From there, we'll get a better idea as to what the future holds. I was most intrigued by the three day pattern that kicked out the February 2003 low as the most recent occurrence. So I ran the results for the next five days to see how the Nasdaq performs. Of the seven occurrences, the index was lower five days later in five of the seven. The details are listed below.


So what's the bottom line? All critters must agree that yesterday's action is unique and has the potential to indicate a near-term low. After all, the NDX declined more than 12% from the Jan high to the recent low. However, history suggests a re-test of some sort in the very near term and only then will we know the true intentions of the market.

Good Luck!

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos