Recent research has focused on studying the patterns in the digits of closely followed stock market indeces (see, \eg, Ley and Varian (1994) and Koedijk and Stork (1994)). In this paper, we find that the series of one-day returns on the Dow-Jones Industrial Average Index (\djia) and the Standard...

The popular press attaches particular significance to certain numerical values of the Dow-Jones index. These magic numbers are referred to as `resistance levels' or `psychological barriers.' We examine 38 years of closing values of this index to see if it is of any help in predicting future...