Chart of the Day - Post-Massive Bear Market Rallies

Chart of the Day

Today's chart illustrates rallies that followed massive bear markets. For today's chart, a 'massive' bear market is defined as a decline of greater than 50%. Since the Dow's inception in 1896, there have been only three bear markets whereby the Dow declined more than 50% (early 1930s, late 1930s until early 1940s, and during the very recent financial crisis). Today's chart also adds the rally that followed the dot-com bust during which the Nasdaq declined 78%. The current Dow rally has followed a path that is fairly similar to that of the Nasdaq rally that began in late 2002 as well as the Dow rally that began in 1942. It is worth noting that after 300 (plus or minus) trading days the market moved into a trading range/choppy phase that lasted for a year or more.

Notes:
- Where's the Dow headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart of the Day Plus.

Rate today's Chart of the Day
Excellent 5 4 3 2 1 No good
By voting every day you help us get you the charts you want to see.

Quote of the Day
"That men do not learn very much from the lessons of history is the most important of all the lessons of history." - Aldous Huxley

Events of the Day
July 01, 2010 - Canada Day
July 04, 2010 - US Independence Day
July 07, 2010 - Running of the Bulls begins in Pamplona, Spain (ends 7/14)
July 08, 2010 - US Women's Open golf tournament begins (ends July 11th)

Mailing List Info
Chart of the Day is FREE to anyone who subscribes.
To ensure email delivery of Chart of the Day, add mailinglist@chartoftheday.com to your whitelist.

-- To subscribe, enter your email address
-- To unsubscribe, simply fill in our unsubscribe form.
-- To change your email address, first subscribe with your new email address and then unsubscribe your old email address (as described above).

Chart of the Day is provided to subscribers without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use.

Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at http://www.chartoftheday.com. If your site provides a list of helpful links, we would appreciate it if you added a link for Chart of the Day at http://www.chartoftheday.com. However, Chart of the Day Plus charts are to be viewed by paying Chart of the Day Plus subscribers only and may not be republished.