Chart of the Day - Thursday, April 9th, 2020

The rally since 3/23 has been stronger than after any of the 13 previous waterfalls (last 5 on chart). $DJIA's 26% is bigger than any bear market rally except in 1930.
This decline was bigger, so bounce should be bigger, but we are in rare territory for a bear market rally.4/4 pic.twitter.com/zqXMug5NAg

— Ed Clissold (@edclissold) April 9, 2020

Today’s Chart of the Day was shared on Twitter by Ed Clissold of Ned Davis Research (@edclissold). The chart compares the bounces that occurred after the past five waterfall declines in the Dow Jones Industrial Average (2002, 2008, 2011, 2018, and 2020). As of today's close, the Dow is up more than 27% from the March lows. As Ed points out, this has been the strongest recovery rally the index has seen in decades. Despite this impressive rebound in just 13 trading days, many continue to dismiss this move as a dead cat bounce, warning that a retest of the low is likely.