Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). The terms bull market and bear market originate from the way in which the two animals fight. Bulls fight with their horns plowing upwards and bears fight with their claws thrashing downwards. Nowadays, the media defines a bear market as a 20% decline from all-time highs on a closing basis. While the S&P 500 hasn't reached that threshold just yet, it's pretty safe to label this a bear market. Willie points out that the Value Line Geometric Index, which measures the 'average stock,' has joined the Nasdaq and the Russell 2000 in official bear market territory, down more than 20% from its highs. More importantly, it's below the 2018 highs and the pre-Covid highs. Further pain is likely unless these levels are reclaimed soon.
Chart of the Day - Tuesday, May 10th, 2022
May 10, 2022
