*The Nasdaq Comp dropped 71.8% from March 10, 2000, to Sept. 21, 2001, during which time it saw seven rallies of 10% or more, which were followed by new lows in price, qualifying them as bear-market rallies, notes SSB's Louise Yamada. There were eight declines following these seven rallies,
ranging from -14% to -42%. The technician's research indicates the character of the 71% drop has occurred only once in the past 100 years in the stock market. The Sept. 3, 1929, to July 8, 1932, fall of 89% on the DJIA saw eight
bear-market rallies, followed by nine declines to lower lows. That period was also similar in its bubble characteristic and in its deflationary environment,
she says. (TG) |
