Jun
05

When the S&P and NASDAQ both gain 1.5%+ and the S&P Outperforms

By on Thursday, June 5th, 2008 at 9:30 pm

One of the more noteworthy developments Thursday was the outperformance by the S&P500. While both the SPX and NDX posted solid gains in excess of 1.5%, the S&P easily posted a greater percentage gain. This is highly unusual. Consider that since 1990, there have been a total of 229 sessions in which both the SPX and NDX gained at least 1.5%. In 206 out of those 229 instances, it was the Nasdaq that ended up with the greater percentage gain. In only 10% of the cases did the SPX manage to outperform. Interestingly, when we look at each of those instances (see table below), the market generally remains in a short-term uptrend. 81% of the time, the S&P closed at a subsequently higher level two sessions later, significantly greater than the 53% at-any-time odds for a higher S&P two sessions later…

SPX and NDX Both Gain 1.5%+, SPX Outperforms
06/05/08… S&P500 ??? two sessions later
03/20/08… S&P500 +1.8% two sessions later
09/18/07… S&P500 -0.1% two sessions later
08/17/07… S&P500 +0.1% two sessions later
08/06/07… S&P500 +2.0% two sessions later
07/12/07… S&P500 +0.1% two sessions later
10/24/05… S&P500 -0.7% two sessions later
04/22/03… S&P500 +0.0% two sessions later
08/07/02… S&P500 +3.6% two sessions later
09/28/01… S&P500 +1.0% two sessions later
10/28/99… S&P500 +0.9% two sessions later
03/05/99… S&P500 +0.3% two sessions later
01/15/99… S&P500 +1.1% two sessions later
09/02/97… S&P500 +0.4% two sessions later
06/24/97… S&P500 -1.4% two sessions later
06/06/97… S&P500 +0.9% two sessions later
10/28/94… S&P500 -1.1% two sessions later
12/23/91… S&P500 +2.0% two sessions later
02/11/91… S&P500 +0.1% two sessions later
01/17/91… S&P500 +0.9% two sessions later
09/28/90… S&P500 +3.0% two sessions later
05/29/90… S&P500 +0.2% two sessions later
05/11/90… S&P500 +0.7% two sessions later

This tends to suggest that a down day Friday will most likely be followed by further strength on Monday.

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