Tuesday, September 29, 2009

Market Update

by Bill McBride on 9/29/2009 04:12:00 PM

Note: Looking ahead, Thursday and Friday will be heavy economic news days with vehicle sales (how bad will the post-clunker slump be?), construction spending, personal income and outlays for August, the employment report on Friday and more.

A couple of market graphs ... the S&P 500 was first at this level in March 1998; about 11 1/2 years ago.

S&P 500 Click on graph for larger image in new window.

The first graph shows the S&P 500 since 1990.

The dashed line is the closing price today.

The S&P 500 is up 57% from the bottom (384 points), and still off 32% from the peak (505 points below the max).

Stock Market Crashes The second graph is from Doug Short - Instead of comparing the markets from the peak (See: the Four Bad Bears), Doug Short matched up the market bottoms for four crashes (with an interim bottom for the Great Depression).

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.