Eight Down: Can the Nasdaq Reverse Its Losing Trend?

The Nasdaq is now down 14.64% from highs made on 10/31/07. For it to fall into a bear market, it needs to drop another 153 points from its current level of 2,440 to 2,287. Looking at our trusty desk calendar, based on the 162 point decline the index has had over the last 3 days, we could be there by Friday!

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Yesterday, we highlighted that even though the Nasdaq was down 7 days in a row, it didn't mean we were due for gains on day 8. Now that the index is down 8 days in a row, however, the chances for gains tomorrow are better.

Historically, the index has averaged a gain of 9 bps (median of 0.40%) on day 9 after declining for 8 consecutive days. And it has gone up on day 9 each of the last 8 times this has happened for an average gain of 72 bps. Hopefully the carnage can at least be stalled for one day!