Rallies After Massive Bear Markets

This is a great chart.

The good folks at ChartOfTheDay.com define a 'massive' bear market as a decline of greater than 50%. There are four of these bear market rallies plotted below: the 1932 Dow Rally, 1942 Dow Rally, 2002 Nasdaq Rally and of course the current rally in the Dow from the 2009 lows.

"The current Dow rally has followed a somewhat middle of the road path and has followed the post dot-com bust rally of the Nasdaq that began back in 2002 fairly closely -- especially over the past year. If the current rally were to continue to follow the post-massive bear market rally pattern, the market would have to work its way higher during much of the remainder of 2012."

Source:

Post-Massive Bear Market Rallies (ChartOfTheDay.com)

Tags: $DJIA $DIA $COMPQ $ND_F $QQQ