Bear Market Rallies

From Chart of the Day:  "Today's chart illustrates rallies that followed massive bear markets. For today's chart, a 'massive' bear market is defined as a decline of greater than 50%. Since the Dow's inception in 1896, there have been only three bear markets whereby the Dow declined more than 50% (early 1930s, late 1930s until early 1940s, and during the very recent financial crisis). Today's chart also adds the rally that followed the dot-com bust during which the Nasdaq declined 78%. The current Dow rally has followed a somewhat middle of the road path and has most closely followed the post dot-com bust rally that began back in 2002. If the current rally were to continue to follow the post-massive bear market rally pattern, the market would have to resume its rally in relatively short order.

Link:  Chart of the Day: Bear Market Rallies

*Long ETFs related to the Dow Jones Industrial Average in certain client accounts.