Friday, August 28, 2009

Chart Of The Day: Bear Market Rallies

Today's chart of the day comes from "Chart of the Day." This clearly shows just how impressive the current rally has been. It is the longest duration bear market rally since 1929 and is close in magnitude to the huge 1929-1930 rally. History doesn't necessarily have to repeat itself, but this should give the bulls some pause. A strong knee-jerk rally following large bear markets is very much the norm, as is a further significant decline. With few ingredients in place for a new secular bull market, things are unlikely to be "different this time."

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