Last week's huge rally in Europe spilled over into this week, and the S&P 500 followed suit, rising nearly 1.5% in the opening minutes. A bit of selling followed the lunch hour, but buyers were control of the last 20 minutes of trading for a closing gain of 1.03%. Year-to-date the index is just fractionally in the red, down 0.04% but 7.81% below the April 29th interim high. The index needs about 8 points to rise above its 200-day moving average.
From an intermediate perspective, the index is 85.8% above the March 2009 closing low and 19.7% below the nominal all-time high of October 2007.
Below are two charts of the index, with and without the 50 and 200-day moving averages.
Click to enlarge charts
For a better sense of how these declines figure into a larger historical context, here's a long-term view of secular bull and bear markets in the S&P Composite since 1871.
For a bit of international flavor, here's a chart series that includes an overlay of the S&P 500, the Dow Crash of 1929 and Great Depression, and the so-called L-shaped "recovery" of the Nikkei 225. I update these weekly.
These charts are not intended as a forecast but rather as a way to study the current market in relation to historic market cycles.
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