Comparing Rallies – The Road to Recovery

I love this fella’s charts–especially now that they are showing a path towards recovery (and hopefully some employment in the very near future)

The Road to Recovery?

November 24, 2009 updated each market day

…this chart… It shifts the point of alignment from the pre-bear highs to the bear bottom in the Oil Crisis and Tech Crash, the first major low in the 1929 Dow, and the March 9th closing low for our current Financial Crisis.

As the chart illustrates, the S&P 500 lows in 1974 and 2002 marked the beginnings of sustained recoveries. The Dow low in 1929 failed 11 months later.

via Comparing Rallies – The Road to Recovery. Bear Turns to Bull?
November 24, 2009 updated each market day

The S&P 500 finished flat today (-0.05%). The index is 63.4% above the March 9th close, which is 29.4% below the peak in October 2007. Here is a snapshot showing the relationship of the S&P 500 to its 50- and 200-day simple moving averages.


One response to “Comparing Rallies – The Road to Recovery

  1. The “recovery” will be short-lived. This is like terrorists exploding a bomb, then when help arrives they do it again! Don’t get sucked in!