It seems you have JavaScript disabled.

Ummm.. Yeah... I'm going to have to ask you to turn Javascript back on... Yeah... Thanks.

Comparing Bear Market Rallies, Then And Now at Trader’s Narrative

The question on everyone’s mind right now is whether this most recent recovery from the March lows is a real one, marking the end of the bear market, or whether it is just a very large and deceptive looking bear market rally?

Since some of the largest and most intense bear market rallies occurred after the crash of 1929, tere’s a chart showing the recent rally in relation to them:

depression era bear market rallies

William Hester of Hussman Funds also looked at this question recently with a more in depth analysis of both the size of the rally and the relationship to volume.

This chart compares the 4 week performance of the S&P 500 prior to the rally and the ensuing 5 week change. Basically, it is an attempt to gauge how sharp the rally is. Data points that clump to the bottom left show a “V” bottom; whereas data points to the top right show a more flat base formation:

comparison of market rallies hussman funds analysis

Check out the article for more insights, including the role of volume.

Free Access to EWI
There has been such a crushing demand for the FREE 120 page report from Elliott Wave International that they’ve extended the offer for a few extra days. It is a mini-book covering the US, European and Asian markets as well as interest rates, commodities, currencies and much more. This is the most recent edition of their comprehensive Global Market Perspective and is exactly what their regular paying clients receive (except they pay $199 and you’re getting it free). But it is only available free for just a few more days. There’s no obligation to purchase anything and you only need your email. I’ll go over it shortly on the blog so download your copy now.

Free Traders Magazine Subscription
traders magazine subscriptionGet a FREE subscription to Traders magazine. Take advantage of this offer right now because it will expire very soon.

Traders magazine informs the professional buy side and sell side trader about the evolving market structures. It covers trends on market making, globalization, block trading, technology, electronic trading, inter-dealer trading, soft dollars, electronic communications networks and all technology that impacts the trading community.

Enjoyed this? Don't miss the next one, grab the feed  or 

                               subscribe through email:  

No Responses to “Comparing Bear Market Rallies, Then And Now”  

  1. No Comments

Leave a Reply