Chart of the Day - Thursday, March 26th, 2020

Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). The chart compares the S&P 500 as of yesterday’s close to the 1929 and 1987 crashes. As of today’s close, the index has rebounded an impressive 17% from Monday’s low. The rally has been a much-needed sigh of relief for the bulls, leading many to believe that the bottom is in. Others warn that this week’s rally is nothing more than a dead cat bounce, and that price will eventually retest Monday’s lows. It may seem like cherry-picking to use 1929 and 1987 as analogs; however, those two crashes are similar in terms of speed and magnitude to the recent decline. Do you think the S&P 500 will go on to retest Monday’s low? Let us know what you think!