Tuesday, June 30, 2009

Bear Market Rally

Bear Market Rally
Monday, June 8th, 2009

My view on the stock market rally (as seen by the S&P500, often denoted on this blog as SPX) that began on March 6 (at ~666) and peaked on Friday (at ~951) is that it is a bear market rally. And it certainly has been generous, given the fundamentals of the economy.

I think it is likely that Friday’s 951 level will mark the end of this rally, although of course that may prove inaccurate.

For those unaware as to what a bear market rally is, a summary is that it is a countertrend move (up) during the course of a bear market. They are often strong and relatively quick.

I recently came across this article about the history of bear market rallies that I found valuable:

http://www.cnbc.com/id/30682133

SPX at 928.52 as this post is written

No comments:

Post a Comment