What Kind of Rally has it Been
Posted by admin in Economy
15Jan
Chart of the day gives us a look at how this market rally has compared with rallies of the past.
The chart below plots all of the major rallies of the last 105 years. Each dot on the chart represents a major rally as measured by the Dow.
What does the chart tell us?
As of right now and the most recent rally the Dow is up 51.6%. It shows that the rally has been quite long in its length but not so strong in its degree of strength.
One thing to keep in mind is that when we talk of a major stock rally it is measured by increasing 30% or more after there has been a correction that is 15% or more.
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